WeTrade Group Inc. Reports Second Quarter 2021 Unaudited Financial Results

Rhea-AI Summary

WeTrade Group Inc. (WETG) reported strong financial results for Q2 2021, with revenues of $3.88 million, up 354% year-over-year. Gross profit surged 332% to $3.69 million, while net income rose 223% to $1.84 million, reflecting a growing customer base and successful service offerings. The company's gross margin stood at 95.1%. Despite increased operational costs due to staffing for software development, Wetrade's commitment to enhancing service capabilities positions it to capitalize on the private domain economy. Cash reserves were reported at $3.21 million as of June 30, 2021, down from $4.64 million at year-end 2020.

Positive

• Revenue increased by 354% to $3.88 million for Q2 2021.
• Gross profit surged 332% to $3.69 million with a gross margin of 95.1%.
• Net income rose 223% to $1.84 million, reflecting a strong growth trajectory.
• Operational profit increased by 230% to $1.92 million.

Negative

• General and administrative expenses increased by 548% to $1.77 million.
• Cash and cash equivalents decreased to $3.21 million from $4.64 million at year-end 2020.

BEIJING, Aug. 17, 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 second quarter ended June 30, 2021.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "With the COVID-19 pandemic accelerating the digital transformation of the substantial industries, the demand for Online-Merge-Offline (OMO) business operation mode is completely exploded, which has driven our business progress into a rapid growth trajectory. For the second quarter of 2021, the Company's revenue and profit both exceeded our expectations."

Mr. Liu continued, "At present, the growth of public domain traffic tends to be flat. One of the few ways of breaking the ceiling of revenue growth is to build up private domain traffic. For Wetrade, we continuously improve the service capabilities and strive to become an assistant for merchants to develop in the private domain in order to grasp the dividends of the private domain economy. Recently, Wetrade has formally joined the Tencent' Thousand Sails Plan as a partner and also a service provider of Tencent Cloud."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "The Company still maintained a momentum of rapid development this quarter due to the maturity of YCloud technology and the growth of the Company's customer base. With the normalization of COVID-19 pandemic prevention and control, digital transformation of the offline retail industry has become a rigid demand. The Company is aiming to further expand in retail industry applications to provide efficient online marketing tools and solution for merchants and further strengthen the revenue base of the Group."

Second Quarter of 2021 Financial Results

		For the Three Months Ended June 30,
($ millions, except per share data)		2021		2020		% Change
Revenue		3.88		0.86		354.0%
Gross Profit		3.69		0.86		331.7%
Gross Margin		95.1%		100%		-4.9pp*
Operations Profit		1.92		0.58		230.4%
Net Income		1.84		0.57		223.0%
Earnings Per Share		0.01		0.00		NM
*Notes: pp represents percentage points

Revenue

Total revenue were $3.88 million and $0.86 million from services revenue from customers and related party for the three months ended June 30, 2021 and 2020, respectively, the increase was mainly due to the service revenue generated from new customers during the period.

Cost of Revenue

Cost of revenue was $0.19 million for the three months ended June 30, 2021, compared with nil for the same period of last year. The increase was in line with the increase in revenue and was mainly due to more staffs were recruited during the period.

Gross profit and gross margin

Gross profit increased by $2.83 million, or 331.7% to $3.69 million for the three months ended June 30, 2021, from $0.86 million for the same period of last year. 

Gross margin was 95.1% for the three months ended June 30, 2021, compared with 100% for the same period of last year.

Operations Profit

General and administrative expenses increased by $1.50 million, or 548.4%, to $1.77 million for the three months ended June 30, 2021 from $0.27 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of new staffs were recruited for software development during the period as compared to no such software development in prior period.

Operations profit increase by $1.34 million, or 230.4% to $1.92 million for the three months ended June 30, 2021, from $0.58 million for the same period of last year.

Net Income

Net income increase by $1.27 million, or 223.0% to $1.84 million for the three months ended June 30, 2021, from $0.57 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the three months ended June 30, 2021, compared with nil for the same period of last year.

Six months ended June 30, 2021 Financial Results

		For the Six Months Ended June 30,
($ millions, except per share data)		2021		2020		% Change
Revenue		6.66		0.88		660.4%
Gross Profit		6.33		0.88		622.0%
Gross Margin		94.9%		100%		-5.1pp*
Operations Profit		2.67		0.58		361.4%
Net Income		2.49		0.57		340.5%
Earnings Per Share		0.01		0.00		NM
*Notes: pp represents percentage points

Revenue

Total revenue were $6.66 million and $0.88 million from service revenue from customers and related party for the six months ended June 30, 2021 and 2020, respectively, the increase was mainly due to the service revenue generated from new customers during the period.

Cost of Revenue

Cost of revenue was $0.34 million for the six months ended June 30, 2021, compared with nil for the same period of last year. The increase was in line with the increase in revenue and was mainly due to more staffs were recruited during the period.

Gross profit and gross margin

Gross profit increased by $5.45 million, or 622.0% to $6.33 million for the six months ended June 30, 2021, from $0.88 million for the same period of last year. 

Gross margin was 94.9% for the six months ended June 30, 2021, compared with 100% for the same period of last year.

Operations Profit

General and administrative expenses increased by $3.36 million, or 1128.3%, to $3.66 million for the six months ended June 30, 2021 from $0.30 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of new staffs were recruited for software development during the period as compared to no such software development in prior period.

Operations profit increased by $2.09 million, or 361.4% to $2.67 million for the six months ended June 30, 2021, from $0.58 million for the same period of last year.

Net Income

Net income increased by $1.92 million, or 340.5% to $2.49 million for the six months ended June 30, 2021 from $0.57 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the six months ended June 30, 2021, compared with nil for the same period of last year.

Financial Condition

As of June 30, 2021, the Company had cash and cash equivalents for $3.21 million, compared to $4.64 million as of December 31, 2020. Net cash used in operating activities was $0.96 million for the six months ended June 30, 2021, compared to $1.20 million for the same period of last year. Net cash used in investing activities was $0.17 million for the six months ended June 30, 2021, compared to nil for the same period of last year. Net cash provided by financing activities was nil for the six months ended June 30, 2021, compared to $0.22 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 SAAS and Cloud Intelligent System for micro-businesses，and is also believed as the first 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.

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
(All amounts shown in U.S. Dollars)		June 30, 2021				December 31, 2020
		(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents		$	3,210,464			$	4,640,603
Accounts Receivables			4,151,236				2,609,520
Note receivable			3,665,808				3,097,981
Other receivables			47,595				50,786
Prepayments			1,981,009				61,707
Total current assets			13,056,112				10,460,597
Non current Assets:
Property and equipment, net			170,428
Right of use assets			2,574,212				2,813,186
Intangible asset, net			43,411				49,029
Rental deposit			233,363				219,895
Total non-current assets			3,021,414				3,082,110
Total Assets:		$	16,077,526			$	13,542,707
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Account payables			184,891				8,176
Accrued expenses			223,815				263,355
Tax payables			272,210				828,695
Amount due to related parties			560,500				416,500
Lease liabilities, current			612,537				569,865
Other payables			528,048				90,633
Total Current Liabilities			2,382,001				2,177,224
Lease liabilities, non current			2,187,361				2,471,598
Total Liabilities		$	4,569,362			$	4,648,822
Stockholders' Equity:
Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at June 30, 2021 and December 31, 2020			-				-
Additional Paid in Capital			6,057,520				6,057,520
Accumulated other comprehensive income			698,900				578,735
Retained Earning			4,751,744				2,257,630
Total Stockholders' Equity		$	11,508,164			$	8,893,885
Total Liabilities and Stockholders' Equity		$	16,077,526			$	13,542,707

 

 

 

WETRADE GROUP INC
STATEMENTS OF OPERATIONS
Unaudited
		For the Three Months Ended June 30, 2021				For the Three Months Ended June 30, 2020				For the Six Months Ended June 30, 2021				For the Six Months Ended June 30, 2020
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenue:
Service revenue, related party		$	-			$	855,293			$	-			$	876,363
Service revenue			3,882,893				-				6,663,816				-
Total service revenue			3,882,893				855,293				6,663,816				876,363
Cost of revenue			(190,459)				-				(336,767)				-
Gross Profit		$	3,692,434			$	855,293			$	6,327,049			$	876,363
Operating expenses
General and administrative expense		$	1,767,457			$	272,608			$	3,656,646			$	297,698
Total operating expenses		$	(1,767,457)			$	(272,608)			$	(3,656,646)			$	(297,698)
Profit from operations			1,924,977				582,685				2,670,403				578,665
Other revenue			115,084				121				198,599				121
Profit before provision for income taxes			2,040,061				582,806				2,869,002				578,786
Income tax provision			(198,031)				(12,553)				(374,888)				(12,553)
Net income		$	1,842,030			$	570,253			$	2,494,114			$	566,233
Comprehensive income
Net income		$	1,842,030			$	570,253			$	2,494,114			$	566,233
Other comprehensive income
Foreign currency translation adjustment			172,098				(3,559)				120,165				(57,060)
Total comprehensive income		$	2,014,128			$	566,694			$	2,614,279			$	509,173
Earning per share, basic and diluted		$	0.01			$	0.00			$	0.01			$	0.00
Weighted-average shares outstanding, basic and diluted*			305,451,498				302,721,999				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 Period				From the period
		June 30, 2021				June 30, 2020
		(unaudited)				(unaudited)
Cash Flows from Operating Activities:
Net Income		$	2,494,114			$	566,233
Adjustment to reconcile net income to cash flows from operating activities:
Amortization of intangible asset			6,206				-
Changes in Operating Assets and Liabilities:
Accounts receivables			(1,509,231)				(444,473)
Note receivable			(564,562)				-
Other receivables			(7,051)				(20,688)
Prepayments			(1,525,201)				(56,422)
Amount due to related parties			144,000				(1,338,014)
Intangible assets			-				(54,679)
Accounts payables			176,447				-
Accrued expenses			229,682				142,628
Right of use assets			272,426				-
Lease liabilities			(277,733)				-
Other payables			(401,486)				5,731
Net Cash Used in Operating Activities:		$	(962,389)			$	(1,199,684)
Cash flow from investing activity:
Office equipment			(170,265)				-
Net cash provided by investing activity:			(170,265)				-
Cash flow from financing activities:
Share issued for cash			-				219,202
Net cash provided by financing activities:			-				219,202
Effect of exchange rate changes on cash			(297,485)				(60,620)
Change in Cash and Cash Equivalents:			(1,430,139)				(1,041,102)
Cash and Cash Equivalents, Beginning of Period			4,640,603				6,591,128
Cash and Cash Equivalents, End of Period		$	3,210,464			$	5,550,026
Supplemental Cash Flow Information:
Cash paid for interest						$	-
Cash paid for taxes						$	-

 

 

 

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SOURCE WeTrade Group Inc.

FAQ

What were WeTrade Group's earnings for Q2 2021?

WeTrade Group reported earnings of $1.84 million for Q2 2021, a 223% increase from Q2 2020.

What is the revenue growth percentage for WeTrade Group in Q2 2021?

WeTrade Group's revenue grew by 354% to $3.88 million in Q2 2021 compared to the previous year.

How has WeTrade Group's gross profit changed in Q2 2021?

Gross profit for WeTrade Group increased by 332% to $3.69 million in Q2 2021.

What challenges did WeTrade Group face in Q2 2021?

WeTrade Group experienced a significant increase in general and administrative expenses, which rose by 548%.

What are WeTrade Group's financial results for the first half of 2021?

For the first half of 2021, WeTrade Group reported revenue of $6.66 million, up 660% from the previous year.