What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2023-07-14 compared with 2022-04-14 · 54 added, 19 removed, 101 unchanged (42% of the section changed)

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock is listed on the Nasdaq Capital Market under the symbol “WETG”.

The following table sets forth, for the periods indicated since then, the high and low closing prices of our common stock on the Nasdaq Capital Market as reported by Yahoo Finance.

Fiscal Year 2023

June 30, 2023 (from June 9, 2023, post-reverse stock split)

March 31, 2023

Fiscal Year 2022

December 31, 2022

September 30, 2022 (from July 19, 2022)

The last reported sales price for our shares of common stock on the Nasdaq Capital Market as of June 30, 2023 was $9.29 per share.

As of June 30, 2023, we had approximately 400 shareholders of record for our common stock.

Transfer Agent

The transfer agent for our common stock is Globex Transfer LLC.

The transfer agent’s telephone number and address is (813) 344-4490 and 780 Deltona Blvd, Deltona, FL 32725.

As of the close of business on December 31, 2022, there were approximately 396 holders of record of our common stock.

8 unchanged sentences

Recent Sales of Unregistered Securities

As of December 31, 2021, there are no recent sales of unregistered securities and the Company total outstanding shares is 305,491,498 shares.

As of December 31, 2022, there were no recent sales of unregistered securities.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

19 unchanged sentences

We expect to expand the application of YCloud to tourism, hospitality, livestreaming and short video, medical beauty and traditional retail industries.

Change of Officer and Director

On August 12, 2022, Mr.

Zhuo Li tendered his resignation as a director and the Chief Operation Officer, effective August 12, 2022.

On August 12, 2022, approved by the Board of Directors, the Nominating Committee and the Compensation Committee, Ms.

Grace Li was appointed as a director of the Company, effective August 12, 2022.

On October 13, 2022, the Board of Directors, Nominating Committee and Compensation Committee approved the appointment of Mr.

Hanfeng Li as the Vice President of Wetrade Group Inc.

(the “Company”), effective October 13, 2022.

On November 29, 2022, Mr.

Kean Tat Che tendered his resignation as a director and the Chief Financial officer, and Mr.

Hung Fai Choi tendered his resignation as a director of the Company, effective November 29, 2022.

On the same day, approved by the Board of Directors, the Nominating Committee and the Compensation Committee, Ms.

Annie Huang was appointed as the Chief Financial Officer of the Company, effective November 29, 2022.

On December 21, 2022, Mr.

Zheng Dai tendered his resignation as chairman of the board, and Mr.

Pijun Liu tendered his resignation as the chief executive officer and a director, effective December 21, 2022.

On the same day, approved by the Board of Directors, the Nominating Committee and the Compensation Committee, Mr.

Hechun Wei was appointed as the Chief Executive Officer of the Company, and Mr.

Biming Guo was appointed as the chairman of the board of the Company, effective December 21, 2022.

Result of Operations

10 unchanged sentences

Income before income tax

Income tax expense

Income tax income/ (expenses)

Net (Loss)/ Income

Revenue from Operations

For the fiscal year ended December 31, 2022 and 2021, total revenue was $11,671,335 and $14,381,295, respectively.

The increase was mainly due to the increase in Gross Merchandise Volume (“GMV”) in Ycloud system.

The decrease was mainly due to the decrease in Gross Merchandise Volume (“GMV”) in Ycloud system under the outbreak of the coronavirus disease during the year.

Service revenue from third party were $10,803,232 (2021:

1 unchanged sentence

$4,646,329) for the year ended December 31, 2022.

The system services fees are collected through Weijiafu and Changtongfu from end users of YCloud system based on the GMV as follow:

The system services fees are collected through from end users of YCloud system based on the GMV as follow:

Gross Merchandise Volume (“GMV”)

2 unchanged sentences

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.

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 technical development service costs were incurred for the system development during the year.

General and Administrative Expenses

For the fiscal year ended December 31, 2022 and 2021, general and administrative expenses were $11,843,048 and 5,705,063, respectively.

The increase is mainly due to increase in the payroll expenses as a result of more new staffs were recruited during the year.

As a result of the factors described above, there was a net income of $5,175,675 and net income of $2,675,037 for the fiscal year ended December 31, 2021 and 2020, respectively, the increase is mainly due to increase in Gross Merchandise Volume (“GMV”) in YCloud system and services are collected from YCloud users based on GMV during the year.

The increase is mainly due to increase is mainly due to professional fee, fund raising costs, financial PR and underwriting fees were incurred for the Nasdaq up-listing during the year.

Net Income/ (loss)

As a result of the factors described above, there was a net loss of $9,147,415 and net income of $5,175,675 for the fiscal year ended December 31, 2022 and 2021, respectively, the increase in loss is mainly due to decrease in revenue and more expenses were incurred for system development and professional fee incurred for Nasdaq up-listing 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, 2021 and 2020, it should be read in conjunction with the financial statements, and notes thereto.

The following chart provides a summary of our balance sheets for the fiscal years ended December 31, 2022 and 2021, it should be read in conjunction with the financial statements, and notes thereto.

Cash and Cash equivalents

Note receivable

Other receivables and prepayments

Loan receivable

Other receivables, deposit and prepayments

Property and equipment, net

Amortised expenses, net

Intangible asset

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Total stockholders’ equity

As of December 31, 2020, we had total assets of $19,470,524, which mainly consisted of $616,593 in cash, $13,028,995 in receivables and note receivables and $2,328,950 in right of use asset;

we had total liabilities of $4,941,202 which consisted of $279,219 in accounts payables & accrued expenses, $1,105,532 in amount due to related parties, $1,018,111 in other liabilities and $2,538,340 in lease liability;

As of December 31, 2022, we had total assets of $46,229,241, which mainly consisted of $20,025,495 in cash, $8,992,642 in receivables and loan receivables, $1,821,428 in amortised expenses, property and equipment, and $15,366,488 in other receivables, deposit and prepayments;

we had total liabilities of $4,509,731 which consisted of $723,648 in accounts payables & accrued expenses, $1,291,296 in amount due to related parties and $2,365,808 in other liabilities;

we had total stockholders’ equity of $41,719,510.

1 unchanged sentence

Our continuing cash flow used in operating activities is $17,608,419 for the fiscal years ended December 31, 2022 as compare to the cash flow provided by operating activities of $3,753,384 in prior year, which was increased by approximately of $14.1 million.

The increase were mainly due to increase in trade receivable of approximately of $3.9 million and increase in prepaid expenses of approximately of $2.9 million during the year.

The increase is partially offset by the increase of net income of approximately of $2.5 million during the year.

The increase were mainly due to prepayment of WT Pay System and payment of professional fees in relation to the Nasdaq up-listing.

Investing activities

Our continuing cash flow used in investing activities is $417,112 for the fiscal years ended December 31, 2021 as compare to the cash flow of $nil in investing activities in prior year.

The increase was mainly due to increase office equipment and office renovation of $417,112 during the year.

Our continuing cash flow provided by investing activities is $493,954 for the fiscal years ended December 31, 2022 as compare to the cash flow used in investing activities of $1,028,322 in prior year.

The increase was mainly due to loan repayment receipts of $2.1 million and which were partially offset by the addition of property and equipment of $1.5 million during the year.

Financing activities

Cash provided in our financing activities was $77,821 for the year ended December 31, 2021 as compare to the net cash used in financing activities of $3,682,142, which was decreased by approximately of $3.6 million.

There were loan repayment of $1,560,020 to related party and increase in loan to third party of $2.96 million in prior year, however there were only $689,031 loan from related party and loan to third party of $611,210 during the year and therefore resulted in decrease net cash used in financing activities during the year.

Cash provided by our financing activities was $37,720,440 for the year ended December 31, 2022 as compare to the net cash provided by financing activities of $689,031, which was increased by approximately of $37.1 million.

The increase is mainly due to 10,000,000 share issuance with the net proceeds from sales of common stock in the amount of $37,534,676 during the year.

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

30 unchanged sentences

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-K

Item 5. Market for Registrant’s Common Equity