Weidai Ltd. Announces Full Year 2021 Financial Results

HANGZHOU,China,April 11,2022 -- 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

Loan balance

Total loan balance as of December 31,2021 was RMB853.0 million (US$133.9 million).

Full Year 2021 Financial Results

Net revenuesin 2021 wereRMB707.5 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 advancesin 2021 was RMB807.3 million (US$126.7 million).

Operating costs and expensesin 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 expensein 2021 were RMB10.3 million (US$1.6 million).

Loss from operationsin 2021 was RMB744.1 million (US$116.8 million).

Income tax expensesin 2021 were RMB403.9 million (US$63.4 million).

Net lossin 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).

Regulatory Developments

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net principal balances (the aggregate principal invested by a certain investor minus the aggregate amount that has been withdrawn by such investor) to investors on its platform.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 cooperatewithgovernment 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.

For more information on this non-GAAP financial measure,please see the table captioned "Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release.

About Weidai Ltd.

Weidai Ltd. is a pioneer and leading auto-backed financing solution provider in China supported by sophisticated and effective risk management system and technology. The Company transforms used automobiles,a type of "non-standard" collateral,into investable assets,to provide accessible credit for China's small and micro enterprises,and connects the borrowers with institutional funding partners through its platform.

For more information,please visit http://weidai.investorroom.com/.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader.Unless otherwise noted,all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00,the noon buying rate on December 30,2021 set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section21E of the Securities Exchange Act of 1934,as amended,and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Weidai may also make written or oral forward-looking statements in its periodic reports to the SEC,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Weidai's beliefs and expectations,are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions,and relate to events that involve known or unknown risks,uncertainties and other factors,all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve risks,uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include,but are not limited the following: Weidai's goal and strategies; Weidai's expansion plans; Weidai's future business development,financial condition and results of operations; Weidai's expectations regarding demand for,and market acceptance of,its solutions and services; Weidai's expectations regarding keeping and strengthening its relationships with borrowers,investors and financial institutions and other platform participants; general economic and business conditions; Weidai's assumptions underlying or related to any of the foregoing regulations and governmental policies relating to the online consumer finance industry in China; its ability to comply with existing or future laws and regulations related to data protection or data security; and Weidai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE,including its ability to cure any non-compliance with the NYSE's continued listing criteria; litigation and negative publicity surroundings China -based companies listed in the U.S.; and the duration of the COVID-19 outbreak,including the emergence of COVID variants,and its potential impact on the Company's business and financial performance. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release,and Weidai does not undertake any obligation to update any forward-looking statement as a result of new information,future events or otherwise,except as required under applicable law.

For investor and media inquiries,please contact:

In China:

Christensen

Mr. Rene Vanguestaine

Tel: +86-10-5900-1548

E-mail: rvanguestaine@christensenir.com

In US:

Christensen

Ms. Linda Bergkamp

Tel: +1-480-614-3004

E-mail: lbergkamp@christensenir.com

WEIDAI LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands of Renminbi ("RMB") and US dollar ("US$")

except for number of shares and per share data)

As of December 31,

2021

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents...............................................

234,568

36,809

Restricted cash.................................................................

101,383

15,909

Loans and advances,net (net of allowance of

RMB1,923,315 (US$301,810) as of December31,

2021)..............................................................................

485,249

76,146

Short-term investments.....................................................

158,565

24,882

Prepaid expenses and other assets,net -current.............

113,752

17,850

Amounts due from related parties....................................

32,829

5,152

Total current assets........................................................

1,126,346

176,748

Non-current assets:

Long-term investments.....................................................

13,333

2,092

Prepaid expenses and other assets-non-current..............

9,204

1,444

Property,equipment and software,net ...........................

28,874

4,531

Right-of-use assets..........................................................

21,910

3,438

Total non-current assets................................................

73,321

11,505

Total assets.....................................................................

1,199,667

188,253

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities (including current liabilities of the

consolidated variable interest entities and subsidiaries

without recourse to the primary beneficiary of

RMB638,869 (US$100,252) as of December 31,2021):

Payable to institutional funding partners and online investors

5,899

926

Current account with online investors and borrowers.

138,683

21,762

Income tax payable..........................................................

236,011

37,035

Accrued expenses and other liabilities.............................

301,080

47,246

Amounts due to related parties........................................

1,175

184

Operating lease liabilities-current.....................................

5,679

891

Contract liabilities.............................................................

58,515

9,182

Total current liabilities...................................................

747,042

117,226

Non-current liabilities (including non-current liabilities

of the consolidated variable interest entities and

subsidiaries without recourse to the primary

beneficiary of RMB17,319 (US$2,718) as of December

31,2021):

Operating lease liabilities-non current..............................

17,319

2,718

Total non-current liabilities...........................................

17,319

2,718

Total liabilities................................................................

764,361

119,944

Shareholders' equity

Class A ordinary shares (par value of US$0.000002 per

share; 35,390,055 shares issued and outstanding as of

December 31,2021)......................................................

—

—

Class B ordinary shares (par value of US$0.000002 per

share; 35,071,400 shares issued and outstanding as of

December 31,2021)

1

—

Additional paid-in capital...................................................

1,252,103

196,482

Accumulated other comprehensive loss...........................

(2,510)

(394)

Accumulated deficit..........................................................

(814,916)

(127,878)

Total Weidai Ltd. shareholders' equity........................

434,678

68,210

Noncontrolling interests...................................................

628

99

Total equity.....................................................................

435,306

68,309

TOTAL LIABILITIES AND EQUITY

1,253

Weidai Ltd.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands of Renminbi ("RMB") and US dollar ("US$"),

except for number of shares and per share data)

Year Ended

December 31,2021

RMB

US$

Net revenues:

Loan service fee...............................................................

698,840

109,663

Other revenues.................................................................

10,153

1,593

Financing income.............................................................

2,069

325

Less: Funding costs.......................................................

(907)

(142)

Net financing income........................................................

1,162

183

Business related taxes and surcharges............................

(2,690)

(422)

Total net revenues..........................................................

707,465

111,017

Provision for loans and advances.....................................

(807,281)

(126,680)

Net loss after provision for loans and

advances.....

(99,816)

(15,663)

Operating costs and expenses:

Provision for financial guarantee liabilities........................

(76,115)

(11,944)

Origination and servicing(including related

party amounts of RMB15,348 (US$2,408)

for the years ended December31,2021)......................

(380,601)

(59,725)

Sales and marketing.........................................................

(3,424)

(537)

General and administrative...............................................

(161,989)

(25,420)

Research and development..............................................

(22,193)

(3,483)

Total operation costs and expenses............................

(644,322)

(101,109)

Loss from operations....................................................

(744,138)

(116,772)

Interest income/(expense) and foreign

currency exchange gain/(loss),net...............................

134

21

Government subsidies.....................................................

1,370

215

Other income,net.............................................................

2,444

384

Net loss before income taxes........................................

(740,190)

(116,152)

Income tax expenses........................................................

(403,854)

(63,374)

Net loss............................................................................

(1,144,044)

(179,526)

Net loss attributable to noncontrolling

interests.........................................................................

3,378

530

Net loss attributable to ordinary

shareholders...................................................................

(1,140,666)

(178,996)

Loss per share:

Basic...................................................................................

(16.19)

(2.54)

Diluted................................................................................

(16.19)

(2.54)

Shares used in loss per share computation:

Basic...................................................................................

70,461,455

70,455

Diluted................................................................................

70,455

Weidai Ltd.

Reconciliation of GAAP And Non-GAAP Results

(Amounts in thousands of Renminbi ("RMB") and US dollar ("US$"),

except for number of shares and per share data)

Year Ended

December 31,2021

RMB

US$

Net loss..........................................................................

(1,526)

Add:

Share-based compensation expenses............................

10,258

1,610

Adjusted net loss

(1,133,786)

(177,916)

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