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Item 2. Management’s Discussion and Analysis

2023-08-22 compared with 2023-08-14 · 119 added, 59 removed, 17 unchanged (91% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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 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 report.

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 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”, which 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.

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 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 report.

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 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”, which 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.

Furthermore, we intend to expand our business in online payment systems and block-chain services in

The market of individual micro-business owners represents a potential of 330 million users by the end of year of 2023.

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.

We expect to utilize the YCloud system to establish a global strategic cooperation with various social media platforms.

The main functions of the YCloud system are 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 have expanded the application of YCloud to tourism, hospitality, livestreaming and short video, medical beauty and traditional retail industries.

Results of Operations

The following tables provide a comparison of a summary of our results of operations for the three months period ended March 31, 2023 and 2022.

Results of Operations for the Three months period Ended March 31, 2023 and 2022

For the period

From the period

Service revenue- related party

Service revenue- non related party

Cost of Sales

market of individual micro-business owners represents a potential of 330 million users by the end of year of 2023.

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.

We expect to utilize the YCloud system to establish a global strategic cooperation with various social

media platforms.

main functions of the YCloud system are to manage users’ marketing relationships, CPS commission profit management, multi-channel

data statistics, AI fission and management, and improved supply chain systems.

YCloud serves the micro business industry.

We have expanded the application of YCloud to tourism, hospitality, livestreaming and short

video, medical beauty and traditional retail industries.

of Operations

Results of Operations for the Six months period

Ended June 30, 2023 and 2022

The following tables provide a comparison of a

summary of our results of operations for the six months period ended June 30, 2023 and 2022.

Service revenue- related parties

Service revenue- non related parties

Cost of Revenue

Gross (Loss)/ Profit

2 unchanged sentences

Operation (Loss) /Profit

Other (expenses) /revenue

Other (expenses) /income

Net (Loss) /Profit before income tax

Income tax expense

Net (Loss)/ income

Revenue from Operations

For the three-month period ended March 31, 2023 and 2022, total revenue was $614,369 and $2,138,952 respectively, the decrease was mainly due to the decrease in Gross Merchandise Volume (“GMV”) in YCloud system as a result of the adjusting of Company business plan in 2023.

The Company is aiming to shift its SAAS, block-chain and WT Pay services from PRC to overseas market.

As of March 31, 2023 and 2022, Service revenue from third party were $577,171 (2022:

Net (Loss)/ Profit

from Operations

For the six-month period ended June 30, 2023 and 2022, total revenue

was $603,343 and $3,590,411 respectively, the decrease was mainly due to the decrease in Gross Merchandise Volume (“GMV”)

in YCloud system as a result of the adjusting of Company business plan in 2023.

The Company intend to shift its SAAS, block-chain and

WT Pay services from PRC to overseas market.

As of June 30, 2023 and 2022, service revenue from third party were $566,813 (2022:

and service revenue from related party were $36,530 (2022:

The system services fees are collected from five customers of YCloud system based on the GMV as follow:

Gross Merchandise Volume (“GMV”)

Non-related parties:

Related party:

Cost of revenue mainly consists of staff payroll,

PRC central provident fund (“CPF”), staff benefits and YCloud system related expenses, the increase is mainly due to the fact

that more expenses were incurred for the system development and system iteration costs during the period.

and Administrative Expenses

For the six months period ended June 30, 2023

and 2022, general and administrative expenses were $1,505,985 and $2,619,894 respectively.

The decrease is mainly due to decrease in advertising

and promotion expenses during the period.

(Loss)/ Income

As a result of the factors described above, there

was a net loss of $958,761 and net income of $140,177 for the period ended June 30, 2023 and 2022, respectively.

The increase in net loss

is mainly due to decrease in Gross Merchandise Volume (“GMV”) as a result of the adjusting of Company business plan in 2023.

The Company is intend to shift its SAAS, block-chain and WT Pay services from PRC to overseas market.

Results of Operations for the three months period

Ended June 30, 2023 and 2022

The following tables provide a comparison of

a summary of our results of operations for the three months period ended June 30, 2023 and 2022.

For the period

From the period

Service revenue- related parties

Service revenue- non related parties

Cost of Revenue

Cost of revenue mainly consists of staff payroll, PRC central provident fund (“CPF”), staff benefits and YCloud system related expenses, the increase is mainly due to the fact that more expenses were incurred for the system development costs during the period.

Gross (Loss)/ Profit

Operating Expenses:

General and Administrative

Operation Loss

Net Profit/ (Loss) before income tax

Income tax expense

Net Income/ (Loss)

Revenue from Operations

For the three-month period ended June 30, 2023

and 2022, total revenue was $nil and $1,451,459 respectively, the decrease was mainly due to the Company has changed its business strategy

and intends to shift its SAAS, block-chain and WT Pay services from PRC to overseas market.

Cost of revenue

Cost of revenue mainly consists of staff payroll,

PRC central provident fund (“CPF”), staff benefits and YCloud system related expenses, there is not material movement in cost

of revenue during the period.

General and Administrative Expenses

For the three months period ended March 31, 2023 and 2022, general and administrative expenses were $690,793 and $792,456 respectively, the decrease is mainly due to decrease in advertising and promotion expenses during the period.

Net (Loss)/ Income

As a result of the factors described above, there was a net loss of $984,842 and net income of $592,316 for the period ended March 31, 2023 and 2022, respectively, the increase in net loss is mainly due to decrease in Gross Merchandise Volume (“GMV”) as a result of the adjusting of Company business plan in 2023.

The Company is aiming to shift its SAAS, block-chain and WT Pay services from PRC to overseas market.

Liquidity and Capital Resources

As of March 31, 2023, we had cash on hand of $20,125,507 as compared to $6,356,060 in prior period.

The increase is mainly due to the fact that the Company has uplisted its common stock to the Nasdaq Capital Market with the public offering of 10,000,000 shares of common stock with the net proceeds of $37,057,176 after deducting the total offering cost of $2,942,824 in July 2022.

For the three months period ended June 30, 2023

and 2022, general and administrative expenses were $826,145 and $1,827,438 respectively, the decrease is mainly due to decrease in advertising

and promotion expenses during the period.

Net Income/ (Loss)

As a result of the factors described above, there

was a net income of $26,079 and net loss of $452,139 for the period ended June 30, 2023 and 2022, respectively, the increase in net income

is mainly due to bad debt recovered from third party during the period.

and Capital Resources

As of June 30, 2023, we had cash on hand of

The increase is mainly due to the fact that the Company has uplisted its common stock to the Nasdaq Capital Market with

the public offering of 10,000,000 shares of common stock with the net proceeds of $37,057,176 after deducting the total offering

cost of $2,942,824 in July 2022.

The increase is partially mitigated by the payment of system development fee.

Operating activities

As of March 31, 2023, our cash flow used in cash flow operating activities is $552,687 for the period ended March 31, 2023 as compared to the cash flow provided by operating activities of $6,208,013 in prior period, which was decreased by approximately of $8.1 million.

The decrease was mainly due to decrease in revenue and decrease in Y-cloud SAAS services fee received from the customers during the period.

Investing activities

As of March 31, 2023, cash provided by investing activities is $636,708 for the period ended March 31, 2023 as compared to the cash flow used in investing activities of $586,412 in prior period.

The increase was mainly due to loan receivable of $0.7 million from borrower during the period.

Financing activities

Cash used in our financing activities was $10,331 for the three months period ended March 31, 2023 as compared to cash provided by financing activities of $122,832.

The decrease is mainly due to lesser advances from related parties during the period.

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

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies

We prepare our financial statements in accordance with generally accepted accounting principles of the United States (“GAAP”).

As of June 30, 2023, our cash flow provided by

operating activities is $5,239,579 for the period ended June 30, 2023 as compared to the cash flow provided by operating activities of

$5,344,055 in prior period, which decreased by approximately of $0.1 million.

The decrease was mainly due to decrease in revenue and

decrease in Y-cloud SAAS services fee received from the customers during the period.

As of June 30, 2023, cash used in investing

activities is $5,605,401 for the period ended June 30, 2023 as compared to the cash flow used in investing activities of $36,674

in prior period.

The increase was mainly due to addition of loan to third party of $5.6 million during the period.

Cash provided by our financing activities was

982,207 for the period ended June 30, 2023 as compared to cash provided by financing activities of $230,832.

The increase is mainly due

to addition advances from shareholders during the period.

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

Sheet Arrangements

do not have any off-balance sheet arrangements.

Accounting Policies

prepare our financial statements in accordance with generally accepted accounting principles of the United States (“GAAP”).

GAAP represents a comprehensive set of accounting and disclosure rules and requirements.

The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

The preparation of our financial statements

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent

assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting

Our actual results could differ from those estimates.

1 unchanged sentence

Deviations from our projections are addressed when our financials are reviewed on a monthly basis.

This allows us to be proactive in our approach to managing our business.

It also allows us to rely on proven data rather than having to make assumptions regarding our estimates.

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company financial statements.

This allows us to be proactive in

our approach to managing our business.

It also allows us to rely on proven data rather than having to make assumptions regarding our

Accounting Pronouncements

have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements

will have a material impact on the Company financial statements.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a “smaller reporting company” as defined by Item 10(f)(1) of Regulation S-K, and as such are not required to provide the information contained in this item pursuant to Item 305 of Regulation S-K.

are a “smaller reporting company” as defined by Item 10(f)(1) of Regulation S-K, and as such are not required to provide

the information contained in this item pursuant to Item 305 of Regulation S-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis