The following discussion and analysis of financial condition and results of
operations should be read in conjunction with our financial statements and
related notes included elsewhere in this annual report. This discussion contains
forward-looking statements that involve risks, uncertainties and assumptions.
See "Cautionary Note Regarding Forward-Looking Statements." Our actual results
could differ materially from those anticipated in the forward-looking statements
as a result of certain factors discussed elsewhere in this annual report.
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WeTrade Group, Inc. was incorporated in the State of Wyoming on March 28, 2019
and is in the business of providing technical services and solutions via its
membership-based social e-commerce platform. We are committed to providing an
international cloud-based intelligence system and independently developed a
micro-business cloud intelligence system called the "YCloud." Our goal is to
provide technical and auto-billing management services to micro-business online
stores in China through big data analytics, machine learning mechanisms, social
network recommendations, and multi-channel data analysis.
We provide technology services to both individual and corporate users. Through
Yueshang Beijing, we provide "YCloud" service to our customer, Zhuozhou Weijiafu
Information Technology Limited, or Weijiafu, a PRC technology company, which
provide "YCloud" services to individual and corporate micro-business owners. The
market individual micro-business owners represents a potential of 330 million
users by the year of 2023. (Source: iResrarch.
http://xueqiu.com/8455183447/172404679?sharetime=2,2/22/2021). YCloud serves
corporate users in multiple industries, including Yuetao Group, Zhiding, Lvyue,
Yuebei, Yuedian, Coke GO, and Zhongyanshangyue. We conduct business operations
in mainland China and have established trial operations in Hong Kong, the
Philippines, and Singapore. We expect to utilize the YCloud system to establish
a global strategic cooperation with various social media platforms. Plan to
negotiate with Kakao Talk, Line, Whatsapp, Ohho, and Bluechat. Additionally, we
have formed long-term technical collaborations with Yuetao App, Daren App,
Yuebei App, Zhiding App, Yuedian App, and Lvyue App through Weijiafu.
In January 2020, we appointed a third-party software company to develop an
auto-billing management system ("WeTrade System"), the early stage of the YCloud
system, at the cost of RMB 400,000 (or approximately USD $62,000) to provide
online payment services for micro-business owners in the PRC. The main functions
of the YCloud system is to manage users' marketing relationships, CPS commission
profit management, multi-channel data statistics, AI fission and management, and
improved supply chain systems.
Currently, YCloud serves the micro business industry. We expect to expand the
application of YCloud to tourism, hospitality, livestreaming and short video,
medical beauty and traditional retail industries.
Result of Operations
The following tables provide a comparison of a summary of our results of
operations for the fiscal year ended December 31, 2020 and 2019.
Results of Operations for the fiscal year Ended December 31, 2020 and 2019
For the year 2019
ended December (Inception) to
31, December 31,
Service revenue, non-related party $ 3,440,312 $ -
Service revenue, related party 2,831,252 -
Cost of Revenue (615,595 ) -
Gross Profit 5,655,969
General and Administrative (1,901,336 ) (417,407 )
Operations Profit/ (Loss) 3,754,633 (417,407 )
Other income 82,960 -
Net Income/ (Loss) before income tax 3,837,593 (417,407 )
Income tax expense (1,162,556 ) -
Net Income/ (loss) $ 2,675,037 $ (417,407 )
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Revenue from Operations
For the fiscal year ended December 31, 2020 and 2019, total revenue was
$6,271,564 and $0, respectively. The increase was mainly from the service
revenue generated from auto-billing management system from customers.
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 staffs were
recruited during the period. The increase is in line with the increase in
revenue during the period.
General and Administrative Expenses
For the fiscal year ended December 31, 2020 and 2019, general and administrative
expenses were $1,901,336 and 417,407, respectively. The increase is mainly due
to increase in the payroll expenses as a result of 89 new staffs were recruited
during the year.
Net Income (Loss)
As a result of the factors described above, there was a net income of $2,675,037
and net loss of $417,407 for the fiscal year ended December 31, 2020 and 2019,
respectively, the increase mainly due to revenue generated from YCloud system
service fee from customers during the year.
Liquidity and Capital Resources
The following chart provides a summary of our balance sheets on for the fiscal
years ended December 31, 2020 and 2019, it should be read in conjunction with
the financial statements, and notes thereto.
Cash and Cash equivalents $ 4,640,603 $ 6,591,128
Receivables $ 2,609,520 -
Note receivable 3,097,981
Other receivables and prepayments 332,388
Intangible asset 49,029
Right of use assets $ 2,813,186 -
Total assets $ 13,542,707 6,591,128
Account payable and accrued expenses $ 271,531 1,786,515
Lease liability $ 3,041,463 -
Amount due to related parties 416,501
Other liabilities 919,328
Total liabilities $ 4,648,822 1,786,515
Total stockholders' equity $ 8,893,885 4,804,613
As of December 31, 2020, we had total assets of $13,542,707, which mainly
consisted of $4,640,603 in cash, $5,707,501 in receivables and note receivables
and $2,813,186 in right of use asset; we had total liabilities of $4,648,822,
which consisted of $271,531 in accounts payables & accrued expenses, $416,501 in
amount due to related parties, $919,328 in other liabilities and $3,041,463 in
lease liability; we had total stockholders' equity of $8,893,885.
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Our continuing operating activities provided by cash of $1,162,337 for the
fiscal years ended December 31, 2020 as compare to the net cash used in of
$130,892, which was increased by approximately $1.3 million. The increase were
mainly due to increase in net income of approximately $2.68 million, increase in
lease liability of approximately $2.9 million and increase in tax payables and
accrued expenses of approximately $1.05 million. However, such increase were
partially offset by the decrease in right of use assets of approximately $2.65
million and trade receivable of approximately $2.5 million during the year.
Cash used in our financing activities was $3,682,142 for the year ended December
31, 2020 as compare to the net cash provided by financing activities of
$6,722,020. The increase in net cash used in financing activities is mainly due
to loan repayment of $1,560,020 to related party and increase in loan to third
party of $2.96 million during the year.
Inflation does not materially affect our business or the results of our
Off-Balance Sheet Arrangements
There is no off-balance sheet arrangements.
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