Weidai Ltd. Announces Full Year 2020 Financial Results

HANGZHOU, China, March 19, 2021 /PRNewswire/ -- 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, 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 Net revenues in 2020 were RMB1,536.1 million (US$235.4 million). Among net revenues, 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).

Provision for loans and advances in 2020 was RMB803.7 million (US$123.2 million).

Operating costs and expenses in 2020 were RMB1,141.1 million (US$174.9 million). Among operating costs and expenses, 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). Share-based compensation expenses in 2020 were RMB6.1 million (US$0.9 million).

Loss from operations in 2020 was RMB408.7 million (US$62.6 million).

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).

Net loss and comprehensive loss attributable to Weidai Ltd.'s ordinary shareholders in 2020 was RMB712.6 million (US$109.2 million).

Adjusted net loss in 2020 was RMB708.3 million (US$108.6 million).

Regulatory Developments

As stated in the earnings release for the first half of 2020 furnished with the SEC on September 17, 2020, Weidai has been cooperating closely with local government in its operation since July 2020.  Weidai's management team is committed to fully cooperating and complying with government instructions. Weidai re-affirms its commitment to ensure a smooth exit from peer-to-peer investments on its platform and would like to thank investors again for their patience and supports during this special period.  

Use of Non-GAAP Financial Measures

The Company uses adjusted net income/(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 income/(loss) helps identify underlying trends in its business by excluding the impact of share-based compensation expenses/(benefits). The Company believes that adjusted net income/(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 income/(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 income/(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 RMB6.5250 to US$1.00, the noon buying rate on December 31, 2020 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 Section 21E 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; 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. 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  

View original content:http://www.prnewswire.com/news-releases/weidai-ltd-announces-full-year-2020-financial-results-301250935.html