BEIJING, July 14, 2023 /PRNewswire/ -- WeTrade Group Inc. ("WeTrade" or the "Company") (NASDAQ: WETG), a global diversified "software as a service" ("SaaS") technology service provider committed to providing technical support and digital transformation tools for enterprises across different industries, today reports its financial results for fiscal year 2022, ended December 31, 2022 .
Mr. Hechun Wei, Chief Executive Officer of Wetrade, commented: "2022 is a year of rapid growth for us. The expansion of our diversified business and the steady growth of customer base are laying a strong foundation for our long-term development. We are confident in restoring the growth of our revenue and operating profits in the near future. In 2023, we will seize the cross-border business development opportunities after the reopening of the border and achieve further milestones. WTPay will be the major drive of the Company's growth and will help the Company expand its business. Meanwhile, as we are seeing the explosive growth of generative AI in 2023, we are convinced that this is a breakthrough innovation and technological revolution, which will attract new talents and like-minded organizations. In 2023, we will focus on AI intelligence, restoring growth, and maximizing the potential of AIGC ."
Ms. Annie Huang, Chief Financial Officer of Wetrade, commented: "In 2022, we mainly focused on the development of multi-sector businesses. We believe the temporary decline in our revenues is a tradeoff in building the foundation for a steady future. We will continue to optimize our strategic development plan in a timely and effective manner, focusing on developing the Company's core businesses to ensure the Company's financial resilience."
Fiscal Year 2022 Financial Results
For the year 2022 | For the year 2021 | |||||||
Revenue: | ||||||||
Service revenue, non-related party | $ | 10,803,232 | $ | 9,734,966 | ||||
Service revenue, related party | 868,103 | 4,646,329 | ||||||
11,671,335 | 14,381,295 | |||||||
Cost of Revenue | (9,695,290) | (2,681,939) | ||||||
Gross Profit | 1,976,045 | 11,699,356 | ||||||
Operating Expenses: | ||||||||
General and Administrative | (11,843,048) | (5,705,063) | ||||||
Operations Profit | (9,867,003) | 5,994,293 | ||||||
Other income | 636,934 | 303,665 | ||||||
Income before income tax | (9,230,069) | 6,297,958 | ||||||
Income tax income/ (expenses) | 82,654 | (1,122,283) | ||||||
Net (Loss)/ Income | $ | (9,147,415) | $ | 5,175,675 | ||||
Revenue from Operations
For the fiscal year ended December 31, 2022 and 2021, total revenue was $11,671,335 and $14,381,295, respectively. The decrease was mainly due to the decrease in Gross Merchandise Volume ("GMV") in Ycloud system under the outbreak of the coronavirus disease during the year. Service revenue from third party were $10,803,232 (2021: $9,734,966 ) and service revenue from related party were $868,103 (2021: $4,646,329 ) for the year ended December 31, 2022 . The system services fees are collected through from end users of YCloud system based on the GMV as follow:
Gross Merchandise Volume ("GMV") | 2022 | 2021 | ||||||
US$ | US$ | |||||||
Non-related party | 327,183,593 | 292,177,817 | ||||||
Related party | 26,291,122 | 139,359,179 | ||||||
Total: | 353,474,715 | 431,536,996 | ||||||
Cost of revenue
Cost of revenue is mainly consists of staff payroll, PRC central provident fund ("CPF") and other staff benefits, the increase is mainly due to more technical development service costs were incurred for the system development during the year.
General and Administrative Expenses
For the fiscal year ended December 31, 2022 and 2021, general and administrative expenses were $11,843,048 and 5,705,063, respectively. The increase is mainly due to increase is mainly due to professional fee, fund raising costs, financial PR and underwriting fees were incurred for the Nasdaq up-listing during the year.
Net Income/ (loss)
As a result of the factors described above, there was a net loss of $9,147,415 and net income of $5,175,675 for the fiscal year ended December 31, 2022 and 2021, respectively, the increase in loss is mainly due to decrease in revenue and more expenses were incurred for system development and professional fee incurred for Nasdaq up-listing during the year.
2022 | 2021 | |||||||
Cash and Cash equivalents | $ | 20,025,495 | $ | 616,593 | ||||
Receivables | 7,377,801 | 9,230,865 | ||||||
Loan receivable | 1,614,841 | 3,798,130 | ||||||
Other receivables, deposit and prepayments | 15,366,488 | 3,062,868 | ||||||
Property and equipment, net | 992,445 | 395,353 | ||||||
Amortised expenses, net | 828,983 | |||||||
Intangible asset | 23,188 | 37,765 | ||||||
Right of use assets | - | 2,328,950 | ||||||
Total assets | $ | 46,229,241 | $ | 19,470,524 | ||||
Account payable and accrued expenses | 723,648 | 279,219 | ||||||
Tax payable | 128,979 | 711,841 | ||||||
Lease liability | - | 2,538,340 | ||||||
Amount due to related parties | 1,291,296 | 1,105,532 | ||||||
Other liabilities | 2,365,808 | 306,270 | ||||||
Total liabilities | $ | 4,509,731 | $ | 4,941,202 | ||||
Total stockholders' equity | $ | 41,719,510 | 14,529,322 | |||||
As of December 31, 2022, we had total assets of $46,229,241, which mainly consisted of $20,025,495 in cash, $8,992,642 in receivables and loan receivables, $1,821,428 in amortised expenses, property and equipment, and $15,366,488 in other receivables, deposit and prepayments; we had total liabilities of $4,509,731 which consisted of $723,648 in accounts payables & accrued expenses, $1,291,296 in amount due to related parties and $2,365,808 in other liabilities; we had total stockholders' equity of $41,719,510 .
Operating activities
Our continuing cash flow used in operating activities is $17,608,419 for the fiscal years ended December 31, 2022 as compare to the cash flow provided by operating activities of $3,753,384 in prior year, which was increased by approximately of $14.1 million . The increase were mainly due to prepayment of WT Pay System and payment of professional fees in relation to the Nasdaq up-listing.
Investing activities
Our continuing cash flow provided by investing activities is $493,954 for the fiscal years ended December 31, 2022 as compare to the cash flow used in investing activities of $1,028,322 in prior year. The increase was mainly due to loan repayment receipts of $2.1 million and which were partially offset by the addition of property and equipment of $1.5 million during the year.
Financing activities
Cash provided by our financing activities was $37,720,440 for the year ended December 31, 2022 as compare to the net cash provided by financing activities of $689,031, which was increased by approximately of $37.1 million . The increase is mainly due to 10,000,000 share issuance with the net proceeds from sales of common stock in the amount of $37,534,676 during the year.
About WeTrade Group Inc.
WeTrade Group Inc. is a global diversified "software as a service" ("SaaS") technology service provider which is committed to providing technical support and digital transformation tools for enterprises across different industries. The four business segments of WeTrade Group are YCloud, WTPay,Y-Health and YG.
YCloud is a micro-business cloud intelligent system launched by WeTrade, serving global micro-business industry. YCloud strengthens users' marketing relationship and CPS commission profit management through leading technology and big data analysis. It also helps increase the payment scenarios to increase customers' revenue by multi-channel data statistics, AI fission and management as well as improved supply chain system.
Independently developed by the Company, WTPay supports multiple methods of online payment and eight mainstream digital wallets in over 100 countries to help customers quickly realize global collection and payment business.
Y-Health is the sector focusing on public health business, which engages in developing global business for biological health and medical enterprises. Currently, Y-Health mainly focuses on detection and prevention of epidemic, daily healthcare, traditional Chinese medicines, and others.
YG is the new energy business segment which mainly provides tools and technical support for the digital new energy industry in the Middle East and Central Asia .
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.
SOURCE WeTrade Group INC
