WeTrade Group Inc. Reports Third Quarter 2020 Unaudited Financial Results

BEIJING, Dec. 2, 2020 /PRNewswire/ -- WeTrade Group Inc. ("Wetrade" or the "Company") (US: WETG), an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform, today reports its unaudited financial results for the third quarter ended September 30, 2020.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "We are very pleased to report our markets and businesses continue to prove resilient in the face of a challenging macro-environment of COVID-19. Our third quarter results were above our expectations across the group from the top line to the bottom line. Revenue and net income were recorded $2.01 million and $0.74 million respectively. Our Q3 gross margin reached 78.7%, proving our strong profitability." 

Mr. Liu continued, "The competition among merchants on mainstream ecommerce platforms in China is intensifying, which creates opportunities for WeChat e-commerce(micro-business) and benefits its service providers like us. As a new decentralized model, WeChat e-commerce is the inevitable development of the next era and small and medium-sized merchants are the inevitable choice to seize traffic. Our customers are adapting to a new cadence in this environment, and we continue to adapt to support them in their evolving ways of working. The number of WeChat e-commerce users is expected to reach 100 million, 200 million and 360 million by the end of 2020, 2021 and 2022 respectively, demonstrating micro-business is a high-growth industry with a large total addressable market. To address this market, we independently developed a cloud intelligent system ("YCloud") for WeChat e-commerce through big data learning, social connection building, multi-channel data analysis, etc. We are engaging in providing better cloud intelligent solutions for micro-business users."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "We are very pleased to see that the Company maintains a sustained and rapid development. The revenue growth this quarter mainly comes from the Company's technology and supply chain empowerment which enables customers to rapidly expand their consumer groups and establishing solid consumer base form a stable repurchase. YCloud in Q3 has served many customers including 12 million individuals, 60,000 Wechat group owners and over 2,000 hotels. Looking forward, we will focus on in-depth empowerment of new applications in the vertical field of WeChat e-commerce business, providing more scene-based applications and seeking new partnerships to explore new opportunities."

Third Quarter of 2020 Financial Results

*Notes: pp represents percentage points

Revenue

Total revenue was $2.01 million for the three months ended September 30, 2020, compared with nil for the same period of last year, which was mainly due to increase in service revenue generated from auto-billing management system from micro-business users.

Cost of Sales

Total cost of sales was $0.43 million for the three months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $1.58 million for three months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 78.7% for the three months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.30 million, or 267.0%, to $0.41 million for the three months ended September 30, 2020 from $0.11 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.18 million for the three months ended September 30, 2020, compared with operations loss of $0.11 million for the same period of last year.

Net Income (loss)

Net income was $0.74 million for the three months ended September 30, 2020, compared with net loss of $0.11 million for the same period of last year. Basic and diluted earnings per share was nil for the three months ended September 30, 2020, compared with nil for the same period of last year.

Nine months ended September 30, 2020 Financial Results

*Notes: pp represents percentage points

Revenue

Total revenue was $2.89 million for the nine months ended September 30, 2020, compared with nil for the same period of last year, which was mainly from the service revenue generated from auto-billing management system from customers.

Cost of Sales

Total cost of sales was $0.52 million for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $2.37 million for nine months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 82.2% for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.36 million, or 142.0%, to $0.62 million for the nine months ended September 30, 2020 from $0.26 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.76 million for the nine months ended September 30, 2020, compared with operations loss of $0.26 million for the same period of last year.

Net Income/(loss)

Net income was $1.31 million for the nine months ended September 30, 2020, compared with net loss of $0.26 million for the same period of last year. Basic and diluted earnings per share was nil for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Financial Condition

As of September 30, 2020, the Company had cash and cash equivalents for $6.79 million, compared to $6.59 million as of December 31, 2019. Net cash used in operating activities was $1,042,610 for the nine months ended September 30, 2020, compared to $509 for the same period of last year. Net cash provided by financing activities was $0.84 million for the nine months ended September 30, 2020, compared to $0.22 million for the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform and the Company targets to provide technical and auto-billing management services for 100 million micro-business users in China. Wetrade has conducted its business operations in mainland China and trial operation in Hong Kong, Philippines and Singapore.  WeTrade has also formed the long-term technical cooperation with Yuetao App, Daren App, Yuebei App, Jingdong App, Yuedian App and Lvyue App. For more information, please visit http://www.wetradegroup.net.

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:

WeTrade Group Inc.
[email protected]

Ascent Investor Relations LLC
Tina Xiao
+1-917-609-0333
[email protected]  

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split. 

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split.

SOURCE WeTrade Group Inc.