WeTrade Group Inc. Reports Second Quarter 2021 Unaudited Financial Results

BEIJING,Aug. 17,2021 -- 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 unaudited financial results for the second quarter endedJune 30,2021.

Mr. Pijun Liu,Chief Executive Officer of Wetrade,commented,"With the COVID-19 pandemicaccelerating the digital transformation of the substantial industries,the demand for Online-Merge-Offline (OMO) business operation mode iscompletely exploded,which has driven ourbusiness progress into a rapid growth trajectory. For the second quarter of 2021,the Company's revenue and profit both exceeded our expectations."

Mr. Liu continued,"At present,the growth of public domain traffic tends to be flat. One of the fewways of breaking the ceiling of revenue growth is to build upprivate domain traffic. For Wetrade,we continuously improve the service capabilities and strive to become an assistant for merchants to develop in the private domain in order to grasp the dividends of the private domain economy. Recently,Wetrade has formally joined the Tencent' Thousand Sails Plan as a partner and also a service provider of Tencent Cloud."

Mr. Kean Tat Che,Chief Financial Officer of Wetrade,"The Company still maintained a momentum of rapid development this quarter due to the maturity of YCloud technology and the growth of the Company's customer base. With the normalization of COVID-19 pandemic prevention and control,digital transformation of the offline retail industry has become a rigid demand. The Company is aiming to further expand in retail industry applications to provide efficient online marketing tools and solution for merchants and further strengthen the revenue base of the Group."

Second Quarter of 2021 Financial Results

For the ThreeMonths Ended June 30,

($ millions,except per share data)

2021

2020

% Change

Revenue

3.88

0.86

354.0%

Gross Profit

3.69

0.86

331.7%

Gross Margin

95.1%

100%

-4.9pp*

Operations Profit

1.92

0.58

230.4%

Net Income

1.84

0.57

223.0%

Earnings Per Share

0.01

0.00

NM

*Notes: pp represents percentage points

Revenue

Total revenue were $3.88 million and $0.86 million from services revenue from customers and related party for the three months ended June 30,2021 and 2020,respectively,the increase was mainly due to the service revenue generated from new customers during the period.

Cost of Revenue

Cost of revenue was $0.19 million for the three months ended June 30,2021,compared with nil for the same period of last year. The increase was in line with the increase in revenue and was mainly due to more staffs were recruited during the period.

Gross profit and gross margin

Gross profit increased by $2.83 million,or 331.7% to $3.69 million for the three months ended June 30,from $0.86 million for the same period of last year.

Gross margin was 95.1% for the three months ended June 30,compared with 100% for the same period of last year.

Operations Profit

General and administrative expenses increased by$1.50 million,or 548.4%,to$1.77 millionfor the three months endedJune 30,2021from$0.27 millionfor the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of new staffs were recruited for software development during the period as compared to no such software development in prior period.

Operations profit increase by $1.34 million,or 230.4% to $1.92 millionfor the three months ended June 30,from $0.58 million for the same period of last year.

Net Income

Net income increase by $1.27 million,or 223.0% to $1.84 million for the three months ended June 30,from $0.57 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the three months ended June 30,compared with nil for the same period of last year.

Sixmonths endedJune 30,2021Financial Results

For the SixMonths Ended June 30,except per share data)

2021

2020

% Change

Revenue

6.66

0.88

660.4%

Gross Profit

6.33

0.88

622.0%

Gross Margin

94.9%

100%

-5.1pp*

Operations Profit

2.67

0.58

361.4%

Net Income

2.49

0.57

340.5%

Earnings Per Share

0.01

0.00

NM

*Notes: pp represents percentage points

Revenue

Total revenue were$6.66 million and $0.88 million from service revenue from customers and related party for the six months endedJune 30,the increase was mainly due to the service revenue generated from new customers during the period.

Cost of Revenue

Cost of revenue was$0.34 millionfor the six months endedJune 30,compared with nil for the same period of last year. The increase was in line with the increase in revenue and was mainly due to more staffs were recruited during the period.

Gross profit and gross margin

Gross profit increased by $5.45 million,or 622.0% to$6.33 millionfor the six months endedJune 30,from $0.88 million for the same period of last year.

Gross margin was 94.9% for the six months endedJune 30,compared with 100% for the same period of last year.

Operations Profit

General and administrative expenses increased by$3.36 million,or 1128.3%,to$3.66 millionfor the six months endedJune 30,2021from$0.30 millionfor the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of new staffs were recruited for software development during the period as compared to no such software development in prior period.

Operations profit increased by $2.09 million,or 361.4% to$2.67 millionfor the six months endedJune 30,from$0.58 millionfor the same period of last year.

Net Income

Net income increased by $1.92 million,or 340.5% to $2.49 millionfor the six months endedJune 30,2021 from $0.57 millionfor the same period of last year. Basic and diluted earnings per share was 0.01 for the six months endedJune 30,compared with nil for the same period of last year.

Financial Condition

As ofJune 30,the Company had cash and cash equivalents for$3.21 million,compared to$4.64 millionas ofDecember 31,2020. Net cash used in operating activities was$0.96 millionfor the six months endedJune 30,compared to$1.20 millionfor the same period of last year. Net cash used in investing activities was$0.17 millionfor the six months endedJune 30,compared tonilfor the same period of last year. Net cash provided by financing activities wasnilfor the six months endedJune 30,compared to$0.22 millionfor the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is believed the world's first technical service provider of SAAS and Cloud Intelligent System for micro-businesses，and is also believed as the first internationalized system in the global micro-business cloud intelligence field and the leader,innovator and promoter of the world's cloud intelligent system for micro-businesses. WeTradeGroup 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 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 mainlandChina and Hong Kong,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.

For more information,please contact:

Ascent Investor Relations LLC

Tina Xiao

+1-917-609-0333

tina.xiao@ascent-ir.com

WETRADE GROUP INC

BALANCE SHEETS

(All amounts shown in U.S. Dollars)

June 30,

2021

December 31,

2020

(unaudited)

ASSETS

Current Assets:

Cash and Cash Equivalents

$

3,210,464

$

4,640,603

Accounts Receivables

4,151,236

2,609,520

Note receivable

3,665,808

3,097,981

Other receivables

47,595

50,786

Prepayments

1,981,009

61,707

Total current assets

13,056,112

10,460,597

Non current Assets:

Property and equipment,net

170,428

Right of use assets

2,574,212

2,813,186

Intangible asset,net

43,411

49,029

Rental deposit

233,363

219,895

Total non-current assets

3,021,414

3,082,110

Total Assets:

$

16,077,526

$

13,542,707

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Account payables

184,891

8,176

Accrued expenses

223,815

263,355

Tax payables

272,210

828,695

Amount due to related parties

560,500

416,500

Lease liabilities,current

612,537

569,865

Other payables

528,048

90,633

Total Current Liabilities

2,382,001

2,177,224

Lease liabilities,non current

2,187,361

2,471,598

Total Liabilities

$

4,569,362

$

4,648,822

Stockholders' Equity:

Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at June 30,2021

and December 31,2020

-

-

Additional Paid in Capital

6,057,520

6,520

Accumulated other comprehensive income

698,900

578,735

Retained Earning

4,751,744

2,257,630

Total Stockholders' Equity

$

11,508,164

$

8,893,885

Total Liabilities and Stockholders' Equity

$

16,707

WETRADE GROUP INC

STATEMENTS OF OPERATIONS

Unaudited

For the

Three

Months

Ended

June 30,

2021

For the

Three

Months

Ended

June 30,

2020

For the Six

Months

Ended

June 30,

2021

For the Six

Months

Ended

June 30,

2020

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue:

Service revenue,related party

$

-

$

855,293

$

-

$

876,363

Service revenue

3,882,893

-

6,663,816

-

Total service revenue

3,893

855,293

6,816

876,363

Cost of revenue

(190,459)

-

(336,767)

-

Gross Profit

$

3,692,434

$

855,293

$

6,327,049

$

876,363

Operating expenses

General and administrative expense

$

1,767,457

$

272,608

$

3,656,646

$

297,698

Total operating expenses

$

(1,457)

$

(272,608)

$

(3,646)

$

(297,698)

Profit from operations

1,924,977

582,685

2,670,403

578,665

Other revenue

115,084

121

198,599

121

Profit before provision for income taxes

2,040,061

582,806

2,869,002

578,786

Income tax provision

(198,031)

(12,553)

(374,888)

(12,553)

Net income

$

1,842,030

$

570,253

$

2,494,114

$

566,233

Comprehensive income

Net income

$

1,233

Other comprehensive income

Foreign currency translation adjustment

172,098

(3,559)

120,165

(57,060)

Total comprehensive income

$

2,014,128

$

566,694

$

2,614,279

$

509,173

Earning per share,basic and diluted

$

0.01

$

0.00

$

0.01

$

0.00

Weighted-average shares outstanding,basic and diluted*

305,498

302,721,999

305,498

301,888,665

*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

For the

Period

From the

period

June 30,

2021

June 30,

2020

(unaudited)

(unaudited)

Cash Flows from Operating Activities:

Net Income

$

2,114

$

566,233

Adjustment to reconcile net income to cash flows from operating activities:

Amortization of intangible asset

6,206

-

Changes in Operating Assets and Liabilities:

Accounts receivables

(1,509,231)

(444,473)

Note receivable

(564,562)

-

Other receivables

(7,051)

(20,688)

Prepayments

(1,525,201)

(56,422)

Amount due to related parties

144,000

(1,338,014)

Intangible assets

-

(54,679)

Accounts payables

176,447

-

Accrued expenses

229,682

142,628

Right of use assets

272,426

-

Lease liabilities

(277,733)

-

Other payables

(401,486)

5,731

Net Cash Used in Operating Activities:

$

(962,389)

$

(1,199,684)

Cash flow from investing activity:

Office equipment

(170,265)

-

Net cash provided by investing activity:

(170,265)

-

Cash flow from financing activities:

Share issued for cash

-

219,202

Net cash provided by financing activities:

-

219,202

Effect of exchange rate changes on cash

(297,485)

(60,620)

Change in Cash and Cash Equivalents:

(1,430,139)

(1,041,102)

Cash and Cash Equivalents,Beginning of Period

4,603

6,591,128

Cash and Cash Equivalents,End of Period

$

3,464

$

5,550,026

Supplemental Cash Flow Information:

Cash paid for interest

$

-

Cash paid for taxes

$

-

View original content:https://www.prnewswire.com/news-releases/wetrade-group-inc-reports-second-quarter-2021-unaudited-financial-results-301356661.html