DigitalCFO Newsroom | 20 April 2022
WeTrade Group Inc. today reports its financial results for fiscal year 2021 ended December 31, 2021.
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 2021 ended December 31, 2021.
Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, “2021 was another strong year for us, with solid year-over-year growth across our key financial metrics. The COVID-19 pandemic boosted the home-based economy and has further promoted the rapid development of e-commerce, live broadcasting, and short videos. As a result, the market demand for the tools of SaaS and cloud intelligent systems provided by the Company for micro-businesses was strong, which is a significant factor for the Company’s fast growth. The solid financial results for fiscal year 2021 are the best proof. Looking forward, the Company will continue focusing on business development in vertical areas and investing our resources to create value and returns for our shareholders. We strive to achieve breakthrough innovations in the field of e-commerce retail SaaS and promote the sustainable development of enterprise service.”
Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, “Our high financial growth in 2021 is contributed by the booming of short video and live-streaming e-commerce and the rapid transition of business from offline to online. However, the resurgence of the COVID-19 pandemic at the beginning of 2022 disrupted our planned operation and expansion. In the future, we will keep optimizing our strategic development plan in a timely and effective manner to mitigate the adverse impact of the COVID-19 pandemic to ensure our financial resilience.”
Revenue
Total revenue was $14.38 million and $6.27 million for fiscal year 2021 and 2020, respectively. The increase was mainly due to the increase in Gross Merchandise Volume (“GMV”) in Ycloud system.
Cost of Revenue
Cost of revenue was $2.68 million for fiscal year 2021, compared with $0.62 million for the same period of last year. The increase is mainly due to more staffs were recruited during the period. The increase is in line with the increase in revenue during the period.
Gross profit and gross margin
Gross profit increased by $6.04 million, or 106.8%, to $11.70 million for fiscal year 2021 from $5.66 million for the same period of last year.
Gross margin was 81.4% for fiscal year 2021, compared with 90.2% for the same period of last year.
Operations Profit
General and administrative expenses increased by $3.80 million, or 200.1%, to $5.71 million for fiscal year 2021 from $1.90 million for the same period of last year. The increase is mainly due to increase in the payroll expenses as a result of more new staffs were recruited during the year.
Operations profit increased by $2.24 million, or 59.7%, to $5.99 million for fiscal year 2021 from $3.75 million for the same period of last year.
Net Income
Net income increased by $2.50 million, or 93.5%, to $5.18 million for fiscal year 2021 from $2.68 million for the same period of last year. The increase is mainly due to increase in Gross Merchandise Volume (“GMV”) in YCloud system and services are collected from YCloud users based on GMV during the year.
Basic and diluted earnings per share was $0.02 for Fiscal year 2021, compared with basic and diluted earnings per share of $0.01 for the same period of last year.
Financial Condition
As of December 31, 2021, the Company had cash and cash equivalents for $0.62 million, compared to $4.64 million as of December 31, 2020. Net cash used in operating activities was $3.75 million for fiscal year 2021, compared to net cash provided by operating activities of $1.16 million for the same period of last year. Net cash used in investing activities was $0.42 million for fiscal year 2021, compared with nil for the same period of last year. Net cash provided by our financing activities was $0.08 million for fiscal year 2021, compared to net cash used in financing activities of $3.68 million for the same period of last year.
