WeTrade Group Inc. Reports Fiscal Year 2020 Financial Results
BEIJING, April 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 financial results for fiscal year 2020 ended December 31, 2020.
Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "The changes in the current economic environment have also given us a great opportunity for development. The financial performance in 2020 exceeds our expectation, which once again demonstrates our strategic business direction. At present, the concept of micro-business has been greatly developed and enriched, including large-scale brand owners, self-employed, e-commerce platforms, etc. All merchants that conduct sales and marketing activities based on social ecological platforms can be called micro-businesses. They have built the current micro-business market all together, and these will also be our potential customers."
Mr. Liu continued, "Up to now, we have applied the YCloud intelligent system to micro business industry, tourism industry, hospitality industry, livestreaming and short video industry, aesthetic medical industry and traditional retail industry and other fields, providing them with a complete set of cloud intelligent solutions to help the industry development and transformation in the digital technology era. In 2021, we will continue to explore micro-business and provide a complete technical service system under the background of comprehensively advancing the digital reform and cloud-based micro-business. We are positioned to become the best partner for the digital transformation of the micro-business industry."
Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "We are pleased to see that the Company has maintained a rapid development trend. In 2020, our revenue mainly comes from the continuous improvement of technology and service system, which enables the Company to quickly expand customer base and establish a closed loop of private domain traffic monetization for consumer groups."
Fiscal Year 2020 Financial Results
For the Year Ended December 31, |
||||||
($ millions, except per share data) |
2020 |
2019 |
% Change |
|||
Revenue |
6.27 |
- |
NM |
|||
Gross Profit |
5.66 |
- |
NM |
|||
Gross Margin |
90.2% |
-% |
NM |
|||
Operations Profit/(Loss) |
3.75 |
(0.42) |
NM |
|||
Net Income/(Loss) |
2.68 |
(0.42) |
NM |
|||
Earnings/(Loss) Per Share |
0.01 |
(0.00) |
NM |
|||
*Notes: pp represents percentage points
Revenue
Total revenue was $6.27 million for fiscal year 2020, compared with nil for the same period of last year. The increase was mainly from the service revenue generated from auto-billing management system from customers.
Cost of Revenue
Cost of revenue was $0.62 million for fiscal year 2020, 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 $5.66 million for fiscal year 2020, compared with nil for the same period of last year.
Gross margin was 90.2% for fiscal year 2020, compared with nil for the same period of last year.
Operations Profit/(Loss)
General and administrative expenses increased by $1.48 million, or 355.5%, to $1.90 million for fiscal year 2020 from $0.42 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 89 new staffs were recruited during the period.
Operations profit was $3.75 million for fiscal year 2020, compared with operations loss of $0.42 million for the same period of last year.
Net Income/(Loss)
Net income was $2.68 million for fiscal year 2020, compared with net loss of $0.42 million for the same period of last year. Basic and diluted earnings per share was $0.01 for fiscal year 2020, compared with nil for the same period of last year.
Financial Condition
As of December 31, 2020, the Company had cash and cash equivalents for $4.64 million, compared to $6.59 million as of December 31, 2019.
Net cash provided by operating activities was $1.16 million for fiscal year 2020, compared to net cash used in operating activities of $0.13 million for the same period of last year.
Net cash used in financing activities was $3.68 million for fiscal year 2020, compared to net cash provided by financing activities of $6.72 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.
WETRADE GROUP INC CONSOLIDATED BALANCE SHEETS As of December 31 |
||||||||
(All amounts shown in U.S. Dollars) |
December 2020 |
December 2019 |
||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ |
4,640,603 |
$ |
6,591,128 |
||||
Accounts receivables |
2,609,520 |
- |
||||||
Note receivable |
3,097,981 |
|||||||
Other receivables |
270,681 |
- |
||||||
Prepayments |
61,707 |
- |
||||||
Total Current Assets |
10,680,492 |
6,591,128 |
||||||
Right of use assets |
2,813,186 |
- |
||||||
Intangible asset, net |
49,029 |
- |
||||||
Total Assets: |
$ |
13,542,707 |
$ |
6,591,128 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current Liabilities: |
||||||||
Account Payables |
$ |
8,176 |
$ |
- |
||||
Accrued expenses |
263,355 |
32,000 |
||||||
Tax payables |
828,695 |
- |
||||||
Amount due to related parties |
416,501 |
1,754,515 |
||||||
Lease liabilities, current |
569,865 |
- |
||||||
Other payables |
90,632 |
- |
||||||
Total Current Liabilities |
2,177,224 |
1,786,515 |
||||||
Lease liabilities, non- current |
2,471,598 |
- |
||||||
Total Liabilities |
4,648,822 |
1,786,515 |
||||||
Stockholders' Equity: |
||||||||
Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at December 31, |
- |
- |
||||||
Additional Paid in Capital |
6,057,520 |
222,020 |
||||||
Share to be issued |
- |
5,000,000 |
||||||
Accumulated other comprehensive income |
578,735 |
- |
||||||
Retained Earnings/ (Accumulated Deficit) |
2,257,630 |
(417,407) |
||||||
Total Stockholders' Equity |
8,893,885 |
4,804,613 |
||||||
Total Liabilities and Stockholders' Equity |
$ |
13,542,707 |
$ |
6,591,128 |
||||
*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 Consolidated Statements of Operations and Comprehensive Income (Loss) |
||||||||
For the year December 2020 |
From the March 28, 2019 (Inception) 2019 |
|||||||
Revenue: |
||||||||
Service revenue, non-related party |
$ |
3,440,312 |
$ |
- |
||||
Service revenue, related party |
2,831,252 |
- |
||||||
6,271,564 |
- |
|||||||
Cost of Revenue |
(615,595) |
- |
||||||
Gross Profit |
5,655,969 |
|||||||
Operating Expenses: |
||||||||
General and Administrative |
(1,901,336) |
(417,407) |
||||||
Operations Profit/ (Loss) |
3,754,633 |
(417,407) |
||||||
Other income |
82,960 |
- |
||||||
Net Income/ (Loss) before income tax |
3,837,593 |
(417,407) |
||||||
Income tax expense |
(1,162,556) |
- |
||||||
Net Income/ (loss) |
$ |
2,675,037 |
$ |
(417,407) |
||||
Other Comprehensive Income |
||||||||
Foreign currency translation adjustment |
578,735 |
- |
||||||
Comprehensive Income (Loss) |
3,253,772 |
(417,407) |
||||||
Net income (loss) per share - basic and diluted |
$ |
0.01 |
$ |
(0.00) |
||||
Weighted average number of shares outstanding*; Basic and Diluted |
304,166,073 |
300,222,000 |
||||||
*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 Year Ended December 31, 2020 and 2019 |
||||||||
From the March 28, |
||||||||
For the year December 31, 2020 |
(Inception) December 31, 2019 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net Income/ (Loss) |
$ |
2,675,037 |
$ |
(417,407) |
||||
Adjustment to reconcile net income to cash flows from operating activities: |
||||||||
Amortization of intangible assets |
11,696 |
- |
||||||
Changes in Operating Assets and Liabilities: |
||||||||
Trade Receivables |
(2,489,993) |
- |
||||||
Intangible asset |
(58,480) |
|||||||
Other receivables |
(258,282) |
- |
||||||
Prepaid expenses |
(41,141) |
- |
||||||
Trade payable |
7,802 |
- |
||||||
Amount due to related parties |
- |
254,515 |
||||||
Accrued expenses |
220,658 |
32,000 |
||||||
Tax payables |
828,695 |
- |
||||||
Other payable |
48,524 |
- |
||||||
Right of use assets |
(2,684,330) |
- |
||||||
Lease liabilities |
2,902,151 |
- |
||||||
Net Cash Flows provided by/ (used in) Operating Activities: |
1,162,337 |
(130,892) |
||||||
Cash flow from financing activities: |
||||||||
Proceeds from issuance of common stock |
835,500 |
222,020 |
||||||
Share to be issued |
- |
5,000,000 |
||||||
Note receivable |
(2,957,622) |
- |
||||||
Related party loan |
(1,560,020) |
1,500,000 |
||||||
Net cash (used in)/ provided by financing activities: |
(3,682,142) |
6,722,020 |
||||||
Effect of exchange rate changes on cash |
569,280 |
- |
||||||
Change in Cash and Cash Equivalents: |
(1,950,525) |
6,591,128 |
||||||
Cash and Cash Equivalents, Beginning of Period |
6,591,128 |
- |
||||||
Cash and Cash Equivalents, End of Period |
$ |
4,640,603 |
$ |
6,591,128 |
||||
Supplemental Cash Flow Information: |
||||||||
Cash paid for interest |
$ |
- |
$ |
- |
||||
Cash paid for taxes |
$ |
1,162,556 |
$ |
- |
||||
SOURCE WeTrade Group Inc.
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