- The stock price of Weidai Ltd (NYSE: WEI) increased by over 30% pre-market. These are some details about the company you should know.
The stock price of Weidai Ltd (NYSE: WEI) increased by over 30% pre-market. It is unclear what is driving the stock price up during the pre-market. But this is information about the company you should know.
What does Weidai do? Weidai is a company that provides auto-backed financing solutions in China. And the company’s auto-backed financing platform links borrowers primarily small and micro-enterprise owners with online investors and institutional funding partners. The company launched in 2011 and is based in Hangzhou, China.
This is one of the most recent company announcements:
March 19, 2021
On March 19, 2021, the company announced its financial results for the year ended December 31, 2020, which have not been audited or reviewed by the company’s independent registered accounting firm.
Full Year 2020 Operational Results
Loan balance – Total loan balance as of December 31, 2020 was RMB4.5 billion (US$0.7 billion).
Full Year 2020 Financial Results
The net revenues in 2020 were RMB1,536.1 million (US$235.4 million). And among net revenues, the loan service fee was RMB1,411.1 million (US$216.3 million), other revenues were RMB97.8 million (US$15.0 million), and net financing income was RMB30.8 million (US$4.7 million).
The provision for loans and advances in 2020 was RMB803.7 million (US$123.2 million). And the operating costs and expenses in 2020 were RMB1,141.1 million (US$174.9 million). Among the operating costs and expenses, the provision for financial guarantee liabilities was RMB103.0 million (US$15.8 million), origination and servicing expenses were RMB766.3 million (US$117.4 million), sales and marketing expenses were RMB15.1 million (US$2.3 million), general and administrative expenses were RMB229.5 million (US$35.2 million), and research and development expenses were RMB27.1 million (US$4.2 million). And the share-based compensation expenses in 2020 were RMB6.1 million (US$0.9 million).
The loss from operations in 2020 was RMB408.7 million (US$62.6 million). And the income tax expenses in 2020 were RMB316.5 million (US$48.5 million). Net loss in 2020 was RMB714.3 million (US$109.5 million). And net loss and comprehensive loss attributable to Weidai Ltd.’s ordinary shareholders in 2020 was RMB712.6 million (US$109.2 million). The adjusted net loss in 2020 was RMB708.3 million (US$108.6 million).
In the earnings release for the first half of 2020 furnished with the SEC on September 17, 2020, Weidai said it has been cooperating closely with local government in its operation since July 2020. And Weidai said that its management team is committed to fully cooperating and complying with government instructions. Weidai reaffirmed its commitment to ensuring a smooth exit from peer-to-peer investments on its platform.
Disclaimer: This article is intended for informational purposes. Prior to making any investment, you should conduct your own analysis and financial strategy.