Weidai Ltd. (WEI) Announces FY21 Revenue of $111M, Net Loss of $179.5M

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Weidai Ltd. (NYSE: WEI) today announced its financial results for the fiscal year ended December 31, 2021, which have not been audited or reviewed by the company’s independent registered accounting firm.

Operating results for the year 2021

Loan BalanceThe total loan balance as of December 31, 2021 was RMB 853.0 million (USD 133.9 million).

2021 annual financial results

Net income in 2021 were RMB 707.5 million (US$111.0 million). Among net income, loan service fees were RMB 698.8 million (USD 109.7 million), other income was RMB 10.2 million (USD 1.6 million), and net financing income was of 1.2 million RMB (183,000 USD).

Provision for loans and advances in 2021 was RMB 807.3 million (US$126.7 million).

Operating costs and expenses in 2021 were RMB 644.3 million (US$101.1 million). Among operating costs and expenses, provision for financial guarantee liabilities was RMB 76.1 million (USD 11.9 million), origination and management expenses were RMB 380.6 million (USD 59.7 million). million USD), sales and marketing expenses were 3.4 million RMB (0.5 million USD). ), general and administrative expenses were RMB 162.0 million (USD 25.4 million), and research and development expenses were RMB 22.2 million (USD 3.5 million). The stock-based compensation expense in 2021 was RMB 10.3 million (USD 1.6 million).

Operating loss in 2021 was RMB 744.1 million (US$116.8 million).

Income tax expenses in 2021 were RMB 403.9 million (US$63.4 million).

Net loss in 2021 was RMB 1,144.0 million (US$179.5 million).

Comprehensive loss attributable to common shareholders of Weidai Ltd. in 2021 was RMB 1,140.7 million (US$179.0 million).

Adjusted net loss in 2021 was RMB 1,133.8 million (US$177.9 million).

Regulatory developments

The Company began the process of exiting peer-to-peer lending activity in May 2020. From July 2020 to December 2021, the Company closely cooperated with government authorities to promote a smooth exit from peer-to-peer investing. In July 2021, the Company, in cooperation with relevant government authorities, returned all net principal balances (the total principal invested by a certain investor minus the total amount that was withdrawn by that investor) to investors on its platform. From December 2021 to date, the Company continues to cooperate with government authorities to complete its exit from the peer-to-peer lending business.

Use of Non-GAAP Financial Measures

The Company uses adjusted net loss, a non-GAAP financial measure, to assess its results of operations 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 stock-based compensation expense. The Company believes that Adjusted Net Loss provides useful information about its results of operations, enhances the overall understanding of its past performance and future prospects, and provides greater visibility into key metrics used by management in the Company in its financial and operational decision-making.

Adjusted net loss is not defined under US GAAP and is not presented in accordance with US GAAP. This non-GAAP financial measure has limitations as an analytical tool, and when evaluating the Company’s operating performance, cash flow or liquidity, investors should not consider it in isolation. , or as a substitute for net loss, cash flow from operating activities or other consolidated statements of income and cash flow prepared in accordance with US GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

For more information on this non-GAAP financial measure, please see the table titled “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.

Ann J. Cox