WeTrade Group Inc. Reports Third Quarter 2021 Unaudited Financial Results

BEIJING,Nov. 22,2021 -- 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 third quarter endedSeptember 30,2021.

Mr. Pijun Liu,Chief Executive Officer of Wetrade,commented,"With the cost of public domain traffic continues to rise,seek maximizing inventory value has become a natural choice for merchants to achieve the growth of private domain user pool and user repurchase rate. Wetrade is helping micro-business merchants to solve this issue. For the third quarter of 2021,the Company's performance still maintained a momentum of growth,which demonstrated the correctness of the Company's corporate strategy. Looking forward,the Company expects to continue leveraging the dual drive force of technological innovation and talent strategy to further realize breakthroughs and innovations in the field of e-commerce retail SAAS,as well as promote the sustainable development of capabilities for the corporate services."

Mr. Kean Tat Che,Chief Financial Officer of Wetrade,"We continued to see sustained growth pathway in the third quarter by achieving 128.6% year-over-year top-line growth and 90.3% year-over-year bottom-line growth. The robust growth of our key metrics is driven by our continued efforts of implementing corporate strategy. Reinforcing our competitive advantages of SAAS services and cloud intelligent systems for micro-businesses is pivotal to our continuing success in light of the dynamic business environment and pressures from the current macroeconomic uncertainties. Going forward,we will continue to serve our customers by offering them innovative and quality products and services and we believe our strategic actions will be validated by our customers."

Third Quarter of 2021 Financial Results

For the ThreeMonths Ended September 30,

($ millions,except per share data)

2021

2020

% Change

Revenue

4.60

2.01

128.6%

Gross Profit

2.49

1.58

57.4%

Gross Margin

54.2%

78.7%

-24.5pp*

Operations Profit

1.45

1.18

23.5%

Net Income

1.41

0.74

90.3%

Earnings Per Share

0.01

0.00

NM

*Notes: pp represents percentage points

Revenue

Total revenue were $4.60 million and $2.01 million from services revenue from customers and related party for the three months ended September 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 $2.11 million for the three months ended September 30,2021,compared with $0.43 million 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 $0.91million,or 57.4% to $2.49 million for the three months ended September 30,from $1.58 million for the same period of last year.

Gross margin was 54.2% for the three months ended September 30,compared with 78.7% for the same period of last year.

Operations Profit

General and administrative expenses increased by$0.63 million,or 155.3%,to$1.04 millionfor the three months endedSeptember 30,from$0.41 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 $0.27 million,or 23.5% to $1.45 millionfor the three months ended September 30,from $1.18 million for the same period of last year.

Net Income

Net income increased by $0.67 million,or 90.3% to $1.41 million for the three months ended September 30,from $0.74 million for the same period of last year. Basic and diluted earnings per share was 0.01 for the three months ended September 30,compared with nil for the same period of last year.

Ninemonths endedSeptember 30,2021Financial Results

For the NineMonths Ended September 30,except per share data)

2021

2020

% Change

Revenue

11.26

2.89

289.9%

Gross Profit

8.82

2.37

271.7%

Gross Margin

78.3%

82.2%

-3.9pp*

Operations Profit

4.12

1.76

134.9%

Net Income

3.90

1.31

198.7%

Earnings Per Share

0.01

0.00

NM

*Notes: pp represents percentage points

Revenue

Total revenue were$11.26 million and $2.89 million from service revenue from customers and related party for the nine months endedSeptember 30,the increase was mainly due to the service revenue generated from new customers during the period.

Cost of Revenue

Cost of revenue was$2.44 millionfor the nine months endedSeptember 30,compared with $0.52 million 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 $6.45 million,or 271.7% to$8.82 millionfor the nine months endedSeptember 30,from $2.37 million for the same period of last year.

Gross margin was 78.3% for the nine months endedSeptember 30,compared with 82.2% for the same period of last year.

Operations Profit

General and administrative expenses increased by$4.08 million,or 660.8%,to$4.70 millionfor the nine months endedSeptember 30,from$0.62 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 $2.36 million,or 134.9% to$4.12 millionfor the nine months endedSeptember 30,from$1.76 millionfor the same period of last year.

Net Income

Net income increased by $2.59 million,or 198.7% to $3.90 millionfor the nine months endedSeptember 30,2021 from $1.31 millionfor the same period of last year. Basic and diluted earnings per share was 0.01 for the nine months endedSeptember 30,compared with nil for the same period of last year.

Financial Condition

As ofSeptember 30,the Company had cash and cash equivalents for$1.40 million,compared to$4.64 millionas ofDecember 31,2020. Net cash used in operating activities was$2.81 millionfor the period endedSeptember 30,compared to$1.04 millionfor the same period of last year. Net cash used in investing activities was$0.14 millionfor the period endedSeptember 30,compared tonilfor the same period of last year. Net cash provided by financing activities wasnilfor the period endedSeptember 30,compared to$0.84 millionfor the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is a world's leading technical service provider of SAAS and Cloud Intelligent System for micro-businesses,and is a pioneering 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. WeTrade Group 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 mainland China 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.

WETRADE GROUP INC

BALANCE SHEETS

(All amounts shown in U.S. Dollars)

September 30,

2021

December 31,

2020

(unaudited)

ASSETS

Current Assets:

Cash and Cash Equivalents

$

1,395,025

$

4,640,603

Accounts Receivables

6,680,260

2,609,520

Note receivable

3,713,228

3,097,981

Other receivables

39,242

5,771

Prepayments

2,941,094

61,707

Total current assets

14,768,849

10,415,582

Non current Assets:

Property and equipment,net

138,339

-

Right of use assets

2,436,890

2,813,186

Intangible asset,net

41,841

49,029

Rental deposit

268,225

264,910

Total non-current assets

2,885,295

3,127,125

Total Assets:

$

17,654,144

$

13,542,707

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Account payables

226,850

8,176

Accrued expenses

172,086

263,355

Tax payables

150,709

828,695

Amount due to related parties

668,501

416,500

Lease liabilities,current

569,060

569,865

Other payables

851,195

90,633

Total Current Liabilities

2,638,401

2,177,224

Lease liabilities,non current

2,087,480

2,471,598

Total Liabilities

$

4,725,881

$

4,648,822

Stockholders' Equity:

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

2021 and December 31,2020

-

-

Additional Paid in Capital

6,057,520

6,520

Accumulated other comprehensive income

708,728

578,735

Retained Earning

6,162,015

2,257,630

Total Stockholders' Equity

$

12,928,263

$

8,893,885

Total Liabilities and Stockholders' Equity

$

17,707

WETRADE GROUP INC

STATEMENTS OF OPERATIONS

Unaudited

For the

Three

Months

Ended

September

30,

2021

For the

Three

Months

Ended

September

30,

2020

For the Nine

Months

Ended

September

30,

2021

For the Nine

Months

Ended

September

30,

2020

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue:

Service revenue,related party

$

-

$

1,493,829

$

-

$

2,370,192

Service revenue

4,598,675

518,269

11,262,491

518,269

Total service revenue

4,675

2,012,098

11,491

2,888,461

Cost of revenue

(2,105,116)

(427,647)

(2,441,883)

(515,195)

Gross Profit

2,559

1,584,451

8,820,608

2,373,266

Operating expenses

General and administrative expense

$

1,039,081

$

407,067

$

4,695,727

$

617,216

Total operating expenses

(1,081)

(407,067)

(4,727)

(617,216)

Profit from operations

1,454,478

1,384

4,124,881

1,756,050

Other revenue

59,902

38,939

258,501

39,060

Profit before provision for income taxes

1,541,380

1,216,323

4,383,382

1,795,110

Income tax provision

(104,109)

(475,431)

(478,997)

(487,984)

Net income

$

1,410,271

$

740,892

$

3,904,385

$

1,307,126

Comprehensive income

Net income

$

1,126

Other comprehensive income

Foreign currency translation adjustment

9,828

244,292

129,993

183,673

Total comprehensive income

$

1,420,099

$

985,184

$

4,034,378

$

1,490,799

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

301,665

*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

September

30,

2021

September

30,

2020

(unaudited)

(unaudited)

Cash Flows from Operating Activities:

Net Income

$

3,126

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

Amortization of intangible asset

7,807

-

Changes in Operating Assets and Liabilities:

Trade receivables,related party

-

(478,679)

Trade receivables,third party

(4,031,797)

(549,365)

Note receivable

(609,770)

-

Other receivables

766,002

(275,629)

Prepayments

(2,750,419)

(206,845)

Amount due to related parties

252,000

(1,560,020)

Intangible assets

-

(76,980)

Accounts payables

218,232

-

Accrued expenses

56,445

187,839

Right of use assets

411,515

(2,824,106)

Lease liabilities

(422,999)

2,878,801

Other payables

(610,232)

555,248

Net Cash Used in Operating Activities:

$

(2,808,831)

$

(1,042,610)

Cash flow from investing activity:

Office equipment

(138,124)

-

Net cash provided by investing activity:

(138,124)

-

Cash flow from financing activities:

Share issued for cash

-

835,500

Net cash provided by financing activities:

-

835,500

Effect of exchange rate changes on cash

(298,623)

403,517

Change in Cash and Cash Equivalents:

(3,245,578)

196,407

Cash and Cash Equivalents,Beginning of Period

$

4,603

$

6,591,128

Cash and Cash Equivalents,End of Period

$

1,025

$

6,787,535

Supplemental Cash Flow Information:

Cash paid for interest

-

-

Cash paid for taxes

$

1,078,125

$

-

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