WeTrade Group Inc. Reports Third Quarter 2021 Unaudited Financial Results

Rhea-AI Summary

WeTrade Group Inc. (WETG) reported its third-quarter 2021 financial results, achieving a remarkable 128.6% year-over-year revenue growth, totaling $4.60 million. The company also saw a 90.3% increase in net income to $1.41 million. Despite these gains, gross margin fell to 54.2% from 78.7% a year earlier, indicating rising costs associated with new staff recruitment. General and administrative expenses surged 155.3%, impacting profitability. For the nine months ended September 30, revenue soared 289.9% year-over-year, reaching $11.26 million.

Positive

• Revenue growth of 128.6% year-over-year in Q3 2021.
• Net income increased by 90.3% in Q3 2021.
• Achieved $11.26 million in revenue for the first nine months of 2021, a 289.9% increase.

Negative

• Gross margin decreased to 54.2% from 78.7% year-over-year.
• General and administrative expenses rose by 155.3% in Q3 2021.

BEIJING, Nov. 22, 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 third quarter ended September 30, 2021.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "With the cost of public domain traffic continues to rise, seek maximizing inventory value has become a natural choice for merchants to achieve the growth of private domain user pool and user repurchase rate. Wetrade is helping micro-business merchants to solve this issue. For the third quarter of 2021, the Company's performance still maintained a momentum of growth, which demonstrated the correctness of the Company's corporate strategy. Looking forward, the Company expects to continue leveraging the dual drive force of technological innovation and talent strategy to further realize breakthroughs and innovations in the field of e-commerce retail SAAS, as well as promote the sustainable development of capabilities for the corporate services."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "We continued to see sustained growth pathway in the third quarter by achieving 128.6% year-over-year top-line growth and 90.3% year-over-year bottom-line growth. The robust growth of our key metrics is driven by our continued efforts of implementing corporate strategy. Reinforcing our competitive advantages of SAAS services and cloud intelligent systems for micro-businesses is pivotal to our continuing success in light of the dynamic business environment and pressures from the current macroeconomic uncertainties. Going forward, we will continue to serve our customers by offering them innovative and quality products and services and we believe our strategic actions will be validated by our customers."

Third Quarter of 2021 Financial Results

		For the Three Months Ended September 30,
($ millions, except per share data)		2021		2020		% Change
Revenue		4.60		2.01		128.6%
Gross Profit		2.49		1.58		57.4%
Gross Margin		54.2%		78.7%		-24.5pp*
Operations Profit		1.45		1.18		23.5%
Net Income		1.41		0.74		90.3%
Earnings Per Share		0.01		0.00		NM

*Notes: pp represents percentage points

Revenue

Total revenue were $4.60 million and $2.01 million from services revenue from customers and related party for the three months ended September 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 $2.11 million for the three months ended September 30, 2021, compared with $0.43 million 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 $0.91million, or 57.4% to $2.49 million for the three months ended September 30, 2021, from $1.58 million for the same period of last year. 

Gross margin was 54.2% for the three months ended September 30, 2021, compared with 78.7% for the same period of last year.

Operations Profit

General and administrative expenses increased by $0.63 million, or 155.3%, to $1.04 million for the three months ended September 30, 2021, from $0.41 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 $0.27 million, or 23.5% to $1.45 million for the three months ended September 30, 2021, from $1.18 million for the same period of last year.

Net Income

Net income increased by $0.67 million, or 90.3% to $1.41 million for the three months ended September 30, 2021, from $0.74 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the three months ended September 30, 2021, compared with nil for the same period of last year.

Nine months ended September 30, 2021 Financial Results

		For the Nine Months Ended September 30,
($ millions, except per share data)		2021		2020		% Change
Revenue		11.26		2.89		289.9%
Gross Profit		8.82		2.37		271.7%
Gross Margin		78.3%		82.2%		-3.9pp*
Operations Profit		4.12		1.76		134.9%
Net Income		3.90		1.31		198.7%
Earnings Per Share		0.01		0.00		NM

*Notes: pp represents percentage points

Revenue

Total revenue were $11.26 million and $2.89 million from service revenue from customers and related party for the nine months ended September 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 $2.44 million for the nine months ended September 30, 2021, compared with $0.52 million 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 $6.45 million, or 271.7% to $8.82 million for the nine months ended September 30, 2021, from $2.37 million for the same period of last year. 

Gross margin was 78.3% for the nine months ended September 30, 2021, compared with 82.2% for the same period of last year.

Operations Profit

General and administrative expenses increased by $4.08 million, or 660.8%, to $4.70 million for the nine months ended September 30, 2021, from $0.62 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 $2.36 million, or 134.9% to $4.12 million for the nine months ended September 30, 2021, from $1.76 million for the same period of last year.

Net Income

Net income increased by $2.59 million, or 198.7% to $3.90 million for the nine months ended September 30, 2021 from $1.31 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the nine months ended September 30, 2021, compared with nil for the same period of last year.

Financial Condition

As of September 30, 2021, the Company had cash and cash equivalents for $1.40 million, compared to $4.64 million as of December 31, 2020. Net cash used in operating activities was $2.81 million for the period ended September 30, 2021, compared to $1.04 million for the same period of last year. Net cash used in investing activities was $0.14 million for the period ended September 30, 2021, compared to nil for the same period of last year. Net cash provided by financing activities was nil for the period ended September 30, 2021, compared to $0.84 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
BALANCE SHEETS

(All amounts shown in U.S. Dollars)		September 30, 2021				December 31, 2020
		(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents		$	1,395,025			$	4,640,603
Accounts Receivables			6,680,260				2,609,520
Note receivable			3,713,228				3,097,981
Other receivables			39,242				5,771
Prepayments			2,941,094				61,707
Total current assets			14,768,849				10,415,582
Non current Assets:
Property and equipment, net			138,339				-
Right of use assets			2,436,890				2,813,186
Intangible asset, net			41,841				49,029
Rental deposit			268,225				264,910
Total non-current assets			2,885,295				3,127,125
Total Assets:		$	17,654,144			$	13,542,707
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Account payables			226,850				8,176
Accrued expenses			172,086				263,355
Tax payables			150,709				828,695
Amount due to related parties			668,501				416,500
Lease liabilities, current			569,060				569,865
Other payables			851,195				90,633
Total Current Liabilities			2,638,401				2,177,224
Lease liabilities, non current			2,087,480				2,471,598
Total Liabilities		$	4,725,881			$	4,648,822
Stockholders' Equity:
Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at September 30, 2021 and December 31, 2020			-				-
Additional Paid in Capital			6,057,520				6,057,520
Accumulated other comprehensive income			708,728				578,735
Retained Earning			6,162,015				2,257,630
Total Stockholders' Equity		$	12,928,263			$	8,893,885
Total Liabilities and Stockholders' Equity		$	17,654,144			$	13,542,707

 

 

WETRADE GROUP INC
STATEMENTS OF OPERATIONS
Unaudited

		For the Three Months Ended September 30, 2021				For the Three Months Ended September 30, 2020				For the Nine Months Ended September 30, 2021				For the Nine Months Ended September 30, 2020
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenue:
Service revenue, related party		$	-			$	1,493,829			$	-			$	2,370,192
Service revenue			4,598,675				518,269				11,262,491				518,269
Total service revenue			4,598,675				2,012,098				11,262,491				2,888,461
Cost of revenue			(2,105,116)				(427,647)				(2,441,883)				(515,195)
Gross Profit			2,493,559				1,584,451				8,820,608				2,373,266
Operating expenses
General and administrative expense		$	1,039,081			$	407,067			$	4,695,727			$	617,216
Total operating expenses			(1,039,081)				(407,067)				(4,695,727)				(617,216)
Profit from operations			1,454,478				1,177,384				4,124,881				1,756,050
Other revenue			59,902				38,939				258,501				39,060
Profit before provision for income taxes			1,541,380				1,216,323				4,383,382				1,795,110
Income tax provision			(104,109)				(475,431)				(478,997)				(487,984)
Net income		$	1,410,271			$	740,892			$	3,904,385			$	1,307,126
Comprehensive income
Net income		$	1,410,271			$	740,892			$	3,904,385			$	1,307,126
Other comprehensive income
Foreign currency translation adjustment			9,828				244,292				129,993				183,673
Total comprehensive income		$	1,420,099			$	985,184			$	4,034,378			$	1,490,799
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
		September 30, 2021				September 30, 2020
		(unaudited)				(unaudited)
Cash Flows from Operating Activities:
Net Income		$	3,904,385			$	1,307,126
Adjustment to reconcile net income to cash flows from operating activities:
Amortization of intangible asset			7,807				-
Changes in Operating Assets and Liabilities:
Trade receivables, related party			-				(478,679)
Trade receivables, third party			(4,031,797)				(549,365)
Note receivable			(609,770)				-
Other receivables			766,002				(275,629)
Prepayments			(2,750,419)				(206,845)
Amount due to related parties			252,000				(1,560,020)
Intangible assets			-				(76,980)
Accounts payables			218,232				-
Accrued expenses			56,445				187,839
Right of use assets			411,515				(2,824,106)
Lease liabilities			(422,999)				2,878,801
Other payables			(610,232)				555,248
Net Cash Used in Operating Activities:		$	(2,808,831)			$	(1,042,610)
Cash flow from investing activity:
Office equipment			(138,124)				-
Net cash provided by investing activity:			(138,124)				-
Cash flow from financing activities:
Share issued for cash			-				835,500
Net cash provided by financing activities:			-				835,500
Effect of exchange rate changes on cash			(298,623)				403,517
Change in Cash and Cash Equivalents:			(3,245,578)				196,407
Cash and Cash Equivalents, Beginning of Period		$	4,640,603			$	6,591,128
Cash and Cash Equivalents, End of Period		$	1,395,025			$	6,787,535
Supplemental Cash Flow Information:
Cash paid for interest			-				-
Cash paid for taxes		$	1,078,125			$	-

 

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SOURCE WeTrade Group Inc.

FAQ

What were WeTrade Group's Q3 2021 financial results?

WeTrade Group reported a revenue of $4.60 million for Q3 2021, a 128.6% increase compared to Q3 2020.

How much did WeTrade's net income grow in Q3 2021?

Net income increased by 90.3% to $1.41 million in Q3 2021.

What is the revenue forecast for WeTrade Group for 2021?

WeTrade anticipates continued growth, having reported $11.26 million in revenue for the first nine months of 2021, up 289.9% year-over-year.

What challenges did WeTrade Group face in Q3 2021?

The company experienced a decline in gross margin to 54.2% and a significant increase in general and administrative expenses.