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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Overview

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



                                                                           From the
                                                                            period
                                                                          March 28,
                                                      For the year           2019
                                                     ended December     (Inception) to
                                                          31,            December 31,
                                                          2020               2019

Revenue:


Service revenue, non-related party                   $    3,440,312     $            -
Service revenue, related party                            2,831,252                  -
                                                          6,271,564                  -
Cost of Revenue                                            (615,595 )                -
Gross Profit                                              5,655,969
Operating Expenses:
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.





                                           2020            2019
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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Operating activities

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.

Financing activities

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

Inflation does not materially affect our business or the results of our operations.

Off-Balance Sheet Arrangements

There is no off-balance sheet arrangements.

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