DigitalCFO Newsroom | 12 April 2022
Weidai Ltd. today announced its financial results for the year ended December 31, 2021.
Weidai Ltd. (“Weidai” or the “Company”) (NYSE: WEI), a leading auto-backed financing solution provider in China, today announced its financial results for the year ended December 31, 2021, which have not been audited or reviewed by the Company’s independent registered accounting firm.
Full Year 2021 Operational Results
Total loan balance as of December 31, 2021 was RMB853.0 million (US$133.9 million).
Full Year 2021 Financial Results
Net revenues in 2021 were RMB707.5 million (US$111.0 million). Among net revenues, loan service fee was RMB698.8 million (US$109.7 million), other revenues were RMB10.2 million (US$1.6 million) and net financing income was RMB1.2 million (US$183 thousand).
Provision for loans and advances in 2021 was RMB807.3 million (US$126.7 million).
Operating costs and expenses in 2021 were RMB644.3 million (US$101.1 million). Among operating costs and expenses, provision for financial guarantee liabilities was RMB76.1 million (US$11.9 million), origination and servicing expenses were RMB380.6 million (US$59.7 million), sales and marketing expenses were RMB3.4 million (US$0.5 million), general and administrative expenses were RMB162.0 million (US$25.4 million), and research and development expenses were RMB22.2 million (US$3.5 million). Share-based compensation expense in 2021 were RMB10.3 million (US$1.6 million).
Loss from operations in 2021 was RMB744.1 million (US$116.8 million).
Income tax expenses in 2021 were RMB403.9 million (US$63.4 million).
Net loss in 2021 was RMB1,144.0 million (US$179.5 million).
Comprehensive loss attributable to Weidai Ltd.’s ordinary shareholders in 2021 was RMB1,140.7 million (US$179.0 million).
Adjusted net loss in 2021 was RMB1,133.8 million (US$177.9 million).
The Company commenced the process to exit the peer-to-peer lending business in May 2020. From July 2020 to December 2021, the Company closely cooperated with government authorities to promote a smooth exit of peer-to-peer investments. In July 2021, the Company, in cooperation with the relevant governmental authorities, repaid all outstanding net principal balances (the aggregate principal invested by a certain investor minus the aggregate amount that has been withdrawn by such investor) to investors on its platform. From December 2021 to date, the Company continues to cooperate with government authorities to complete its exit of the peer-to-peer lending industry.
Use of Non-GAAP Financial Measures
The Company uses adjusted net loss, a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that adjusted net loss helps identify underlying trends in its business by excluding the impact of share-based compensation expenses. The Company believes that adjusted net loss provides useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
Adjusted net loss is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider it in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.