Group 1 - WeTrade plans to change its name from WeTrade to Next Technology and its stock ticker from WETG to NXTT, with approval from 50.5% of shareholders [1] - The company will not hold a shareholder meeting for a vote on the name and ticker change due to the majority approval [1] - Following the announcement, WETG stock initially fell by as much as 20% in pre-market trading but later recovered to a decline of 2.4% as of Monday morning [2] Group 2 - The stock had previously experienced an 8.7% decline during normal trading hours on Friday [2] - The article mentions other stocks of interest in the market, including Intelligent Bio Solutions, Millennium Group, and DIH Holding US [2]

Core Viewpoint - WeTrade Group Inc. and Beijing YueShang Digital Technology Group Co., Ltd. have jointly declared that the announcement regarding the sale of their companies is false, and they will pursue legal action against WeTrade Group Inc. for economic compensation [1] Group 1: WeTrade Information Technology Limited - WeTrade Information Technology Limited is a technology research and development company focused on the WTPay business of WeTrade Group Inc., with its core product VCard covering 15 countries globally [2] - The company is also a significant partner in Ping An Bank's financial business [2] Group 2: Beijing YueShang Digital Technology Group Co., Ltd. - Beijing YueShang Digital Technology Group Co., Ltd. operates in various sectors including YCloud, Y-Health, and YG [3][4] - YCloud provides a micro business cloud intelligent system aimed at enhancing user marketing relationships and profit management through advanced technology and big data analysis, leading in the domestic micro commerce industry [3] - Y-Health focuses on global public health, particularly in testing, epidemic prevention, daily health, and traditional Chinese medicine, with investments in Jiqing Biotechnology and partnerships with several healthcare companies [4] - YG offers tools and technical support for the digital new energy industry in the Middle East and Central Asia, collaborating with multiple domestic new energy enterprises [4]

Financial Performance - Total service revenue for the three months ended September 30, 2023, was $1,633,836, a decrease from $5,607,270 in the same period of 2022, representing a decline of approximately 71.1%[10] - Gross profit for the three months ended September 30, 2023, was $1,235,299, compared to a gross loss of $1,294,980 in the same period of 2022[10] - Operating expenses for the three months ended September 30, 2023, increased to $13,622,149, up from $7,799,979 in the same period of 2022, reflecting an increase of approximately 74.3%[10] - The net loss from continuing operations for the three months ended September 30, 2023, was $8,496,543, compared to a loss of $8,657,091 in the same period of 2022, indicating a slight improvement[10] - The net loss for the period ending September 30, 2023, was $9,455,304, compared to a net loss of $8,538,873 for the same period in 2022[20] - The company reported a loss from discontinued operations of $5,421,236 for the nine months ended September 30, 2023, compared to a loss of $6,418,752 for the same period in 2022[72] Assets and Liabilities - Total assets as of September 30, 2023, were $41,876,160, a decrease from $43,060,806 as of December 31, 2022, representing a decline of approximately 2.7%[9] - Total liabilities as of September 30, 2023, were $2,118,337, an increase from $1,341,296 as of December 31, 2022, reflecting an increase of approximately 57.8%[9] - Stockholders' equity as of September 30, 2023, was $39,757,823, down from $41,719,510 as of December 31, 2022, indicating a decrease of approximately 4.7%[9] - The balance of accumulated deficits as of September 30, 2023, was $(16,590,652), reflecting ongoing financial challenges[14] - Total assets related to discontinued operations increased to $12,105,747 as of September 30, 2023, from $1,475,491 as of December 31, 2022[74] - Total liabilities related to discontinued operations rose to $7,672,294 as of September 30, 2023, compared to $233,060 as of December 31, 2022[74] Shareholder Information - The company issued 1,570,600 shares during the three months ended September 30, 2023, resulting in additional paid-in capital of $12,616,454[13] - The company issued 1,570,600 shares for a total amount of $12,616,454 as of September 30, 2023, increasing total issued shares to 2,625,130[79] - The weighted-average common shares outstanding for basic and diluted calculations were 114,844,076 as of September 30, 2023[54] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $8,530,677 for the nine months ended September 30, 2023[20] - The total cash and cash equivalents at the end of the period was $1,416,885, down from $20,261,882 at the beginning of the period[20] - The Company held cash and cash equivalents amounting to $1,416,885 as of September 30, 2023, with no bank deposits in the USA[62] - The Company purchased approximately 833 BTC at a total cost of $24,990,000 during the nine months ended September 30, 2023[64] - The company plans to continue its strategy of acquiring bitcoin with excess liquid assets, subject to market conditions[25] - The company has made a prepayment of approximately $12,125,500 for 40% of 1000 BTC, expected to be delivered by the end of November 2023 at a lock-up price of $30,000 per BTC[67] Digital Assets - The company holds approximately 833 bitcoins, with a carrying amount of $22,398,510 after accounting for impairment losses[27] - The Company recognized a cumulative impairment loss of $2,591,490 on digital assets as of September 30, 2023[35] - Digital asset impairment loss for the period was $2,591,489, impacting the carrying amount of digital assets[20] - As of September 30, 2023, the Company held approximately 833.19 bitcoins with a carrying value of approximately $22.4 million[35] Revenue Recognition - The Company applies ASC 606 for revenue recognition, which requires a five-step model for recognizing revenue from contracts with customers[33] - For the period ended September 30, 2023, the Company generated total revenues of $2,229,999, a significant decrease from $9,197,681 for the same period in 2022[59] - The Ycloud-SAAS business generated revenues of $596,163 for the period ended September 30, 2023, compared to $9,197,681 in the prior year[59] Other Financial Information - The company has not recognized an income tax benefit for its operating losses in the U.S. and Singapore due to the expectation of not commencing active operations in these regions[80] - Related party payables increased to $719,683 as of September 30, 2023, from $521,296 as of December 31, 2022[68] - Director fees payable rose to $954,000 as of September 30, 2023, compared to $770,000 as of December 31, 2022[68] - Accrued expenses for software development fees amounted to $270,864 as of September 30, 2023, with no prior balance reported[70] - As of September 30, 2023, accounts receivable amounted to $129,765, compared to $0 as of December 31, 2022[65]

Financial Performance - Net income from continuing operations for the three months ended June 30, 2023, was $26,079, compared to a loss of $452,139 for the same period in 2022[11]. - Total service revenue for the three months ended June 30, 2023, was $603,343, down from $1,451,459 in the same period last year, representing a decline of approximately 58.4%[11]. - Operating expenses for the three months ended June 30, 2023, were $822,220, compared to $1,827,438 for the same period in 2022, a decrease of about 55.1%[11]. - The company reported a gross loss of $94,582 for the three months ended June 30, 2023, compared to a gross profit of $1,355,510 in the same period last year[11]. - Total comprehensive loss for the three months ended June 30, 2023, was $(637,193), compared to a loss of $(1,365,792) for the same period in 2022[11]. - As of June 30, 2023, the net loss from operations was $958,761, compared to a net profit of $140,177 for the same period in 2022[21]. - The company reported a net loss of $926,518 for the six months ended June 30, 2023, compared to a net income of $274,871 in the same period of 2022[118]. - Total revenue for the six-month period ended June 30, 2023, was $603,343, a decrease of approximately 83.2% from $3,590,411 in the same period of 2022[120]. Assets and Liabilities - Total current assets decreased from $34,215,145 to $30,741,321, a decline of approximately 13.5%[10]. - Total liabilities decreased from $4,509,731 to $3,541,531, a reduction of about 21.5%[10]. - Total assets decreased from $46,229,241 to $42,421,096, a decline of approximately 8.7%[10]. - Accumulated deficits increased from $(1,714,110) to $(3,917,104) over the six months ended June 30, 2023[10]. - The total cash and cash equivalents at the end of the period were $20,004,914, a decrease from $20,025,480 at the beginning of the period[21]. - Loan receivables increased significantly to $7,220,242 as of June 30, 2023, compared to $1,614,841 as of December 31, 2022[87]. - Cash on hand as of June 30, 2023, was $20,004,914, primarily due to the uplisting to the Nasdaq and a public offering that generated net proceeds of $37,057,176[130]. Revenue and Expenses - The company incurred a cost of revenue of $1,005,089 for the six months ended June 30, 2023, compared to $768,587 in 2022, indicating an increase in expenses related to system development[119]. - General and administrative expenses decreased to $1,501,985 for the six months ended June 30, 2023, from $2,619,894 in 2022, a reduction of approximately 42.5%[123]. - Service revenue from non-related parties was $566,813 for the six months ended June 30, 2023, down from $3,302,074 in 2022, reflecting a decline of about 82.8%[120]. YCloud System and Market Strategy - The market for individual micro-business owners is projected to reach 330 million users by the end of 2023[24]. - The YCloud system integrates multiple payment methods, allowing micro-businesses to manage transactions through platforms like Alipay and WeChat[27]. - The company aims to establish global strategic cooperation with various social media platforms through the YCloud system[24]. - The YCloud system provides AI-driven recommendations and management tools to enhance user experience and operational efficiency[30]. - The company has established trial operations in Hong Kong, expanding its market presence beyond mainland China[24]. - The total order amount processed through the YCloud system is directly entered into the platform for fund collection, enhancing financial management for users[27]. - The company plans to shift its SAAS, blockchain, and WT Pay services from the PRC to overseas markets in 2023[120]. Internal Controls and Compliance - The company conducted an evaluation of its internal control over financial reporting as of June 30, 2023, and concluded that it did not maintain effective internal control due to material weaknesses identified[138]. - Management identified material weaknesses related to internal audit functions and lack of segregation of duties within accounting functions[139]. - The company believes that its financial statements and other information presented are materially correct despite the identified weaknesses[138]. - There were no changes in internal control over financial reporting that materially affected the company's controls during the most recently completed fiscal quarter[142]. - Management plans to implement procedures to assure proper transaction initiation, asset custody, and transaction recording by separate individuals[140]. Stock and Share Information - The total issued and outstanding shares of the company's common stock decreased from 195,057,503 to 1,054,364 shares following a 1 for 185 Reverse Stock Split approved on June 9, 2023[146]. - The Reverse Stock Split aims to help the company regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share[147]. - The weighted-average common shares outstanding decreased to 172,526,771 from 231,052,498 year-over-year[62]. Accounting Policies - The company applies ASC 606 for revenue recognition, which involves a five-step model for recognizing revenue[39]. - The company has adopted ASU 2016-02 for leases, requiring recognition of operating and financing lease liabilities on the balance sheet[53]. - The company does not anticipate any material impact from recently issued accounting pronouncements that are not yet effective[135].

Financial Performance - Total service revenue for the three months ended March 31, 2023, was $614,369, a decrease of 71.2% from $2,138,952 in the same period of 2022[13] - Gross loss for the three months ended March 31, 2023, was $(296,137), compared to a gross profit of $1,466,314 in the same period of 2022[13] - Net loss from continuing operations for the three months ended March 31, 2023, was $(984,842), a significant decline from a net income of $592,316 in the same period of 2022[13] - Total revenue for the three-month period ended March 31, 2023, was $614,369, a decrease from $2,138,952 in the same period of 2022, primarily due to a reduction in Gross Merchandise Volume (GMV)[112] - Service revenue from non-related parties was $577,171 for the three months ended March 31, 2023, compared to $1,980,434 in 2022, indicating a significant decline[112] - The company reported a net loss of $984,842 for the three months ended March 31, 2023, compared to a net income of $592,316 in the same period of 2022[114] Assets and Equity - Total assets increased from $43,200,496 as of December 31, 2022, to $46,229,241 as of March 31, 2023, representing a growth of 6.9%[10][12] - Total stockholders' equity decreased from $41,719,510 as of December 31, 2022, to $39,516,758 as of March 31, 2023, a decline of 5.3%[12] - As of March 31, 2023, the total shareholder equity was $39,516,758, a decrease from $41,719,510 as of December 31, 2022, reflecting a net loss of $958,520 for the period[18] - The company reported a total accumulated deficit of $3,943,183 as of March 31, 2023, compared to an accumulated deficit of $1,714,110 as of December 31, 2022[18] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $20,125,507 from $20,025,480, reflecting a slight increase of 0.5%[15] - Cash flows used in operating activities for the three months ended March 31, 2023, were $(552,673), compared to cash provided of $6,208,013 in the same period of 2022[16] - Cash on hand increased to $20,125,507 as of March 31, 2023, up from $6,356,060 in the prior period, largely due to the public offering[115] Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $690,793, down from $792,456 in the same period of 2022, a decrease of 12.8%[13] - The company reported a loss from discontinued operations of $1,240,305 for the three months ended March 31, 2023, compared to a loss of $1,336,142 for the same period in 2022[92] Market and Strategic Initiatives - The market for individual micro-business owners is projected to reach 330 million users by the end of 2023, indicating significant growth potential for the company's services[22] - The YCloud system is designed to provide multiple integrated payment methods, enhancing the operational capabilities of micro-businesses[24] - The company aims to establish global strategic cooperation with various social media platforms to expand its market reach[22] - The YCloud system utilizes AI fission technology to analyze user behavior and provide tailored recommendations, enhancing user engagement[27] - The company has established trial operations in Hong Kong, indicating plans for market expansion beyond mainland China[22] - The company aims to shift its SAAS, blockchain, and WT Pay services from the PRC to overseas markets in 2023[112] Shareholder Information - The weighted average number of shares outstanding decreased from 305,451,498 in the same period of 2022 to 195,057,503 in 2023, a reduction of 36.2%[13] - The company conducted a 1-for-185 reverse stock split, reducing total outstanding shares from 195,057,503 to 1,054,364[103] - The company has no potentially dilutive shares as of March 31, 2023[55] - There are no fractional shares issued as a result of the Reverse Stock Split; they will be rounded up to the nearest whole share[127] Compliance and Reporting - The consolidated financial statements have been prepared in accordance with GAAP, ensuring compliance and transparency in financial reporting[29] - The financial statements for the fiscal quarter ended March 31, 2023, have been filed in XBRL format, including the Balance Sheet, Statement of Income, and Statement of Cash Flows[128] - The certifications of the Principal Executive Officer and Principal Financial Officer have been filed in accordance with the Sarbanes-Oxley Act[128] - There were no changes in internal control over financial reporting that materially affected the company's financial statements during the most recently completed fiscal quarter[125] - The company has not reported any material weaknesses in its internal controls[125] - The company is classified as a "smaller reporting company" and is not required to disclose certain risk factors[125] - No legal proceedings are currently pending against the company[125] Other Financial Metrics - Total GMV for the period ended March 31, 2023, was $18,606,599, a decrease from $74,561,767 in the same period of 2022[64] - The company’s intangible assets, net, amounted to $21,525 as of March 31, 2023, down from $22,959 as of December 31, 2022[68] - Amortization expense for intangible assets for the three months ended March 31, 2023, was $1,434[68] - The average exchange rate for RMB to USD was 6.84 for the period ended March 31, 2023, compared to 6.75 for the year ended December 31, 2022[39] - Accounts receivable increased to $6,748,798 as of March 31, 2023, compared to $6,723,661 as of December 31, 2022, with all service fee receivables fully settled from five main customers[76] - Total prepayments amounted to $13,137,035 as of March 31, 2023, primarily related to a $10 million prepayment for the WT Pay system development expected to be completed by September 2023[78] - Loan receivables decreased significantly to $978,133 as of March 31, 2023, down from $1,614,841 as of December 31, 2022, with no accrued interest due to a waiver[82][83] - Other payables totaled $1,708,748 as of March 31, 2023, a decrease from $2,325,188 as of December 31, 2022, primarily due to Y-Cloud system upgrade payables[89] - Tax payables decreased to $86,838 as of March 31, 2023, from $130,717 as of December 31, 2022, reflecting a reduction in corporate income tax obligations[88] - Accrued expenses totaled $377,423 as of March 31, 2023, encompassing accrued payroll and social welfare contributions[87] - The company’s related party payables decreased to $1,280,966 as of March 31, 2023, from $1,291,296 as of December 31, 2022[86] - Amortized expenses, net, decreased to $780,326 as of March 31, 2023, from $828,983 as of December 31, 2022, indicating a rise in accumulated depreciation[74] Public Offering - The company completed a public offering of 10,000,000 shares at $4.00 per share, raising gross proceeds of $40,000,000 and net proceeds of $37,057,176 after costs[100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ WETRADE GROUP INC (Exact name of registrant as specified in its charter) | --- | --- | |------------------------------------------|--------------- ...

[PART I - Financial Information](index=2&type=section&id=PART%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for June 30, 2022, show decreased assets and net income, with a significant share cancellation [Note 1 – Nature of Business](index=6&type=section&id=NOTE%201%20%E2%80%93%20NATURE%20OF%20BUSINESS) WeTrade Group provides technical services via its 'YCloud' social e-commerce platform for micro-businesses in China, expanding into new sectors - The company's core business is providing a cloud-based intelligence system called **"YCloud"** for social e-commerce, targeting micro-businesses in China[16](index=16&type=chunk) - Key functions of YCloud include managing marketing relationships, CPS commission profit management, multi-channel data statistics, AI fission and management, and supply chain integration[18](index=18&type=chunk) - In Q1 2022, the company expanded its client base by entering into YCloud system service agreements with Beijing Yidong, Maitu International, and Beijing Youth Travel[19](index=19&type=chunk)[20](index=20&type=chunk) [Note 4 – Revenue](index=13&type=section&id=NOTE%204%20%E2%80%93%20REVENUE) Revenue from YCloud's GMV-based service fees (2%-3.5%) decreased, with total GMV falling to **$116.5 million** for H1 2022 - Revenue is derived from a system service fee of **2%-3.5%** of the Gross Merchandise Volume (GMV) generated on the YCloud platform[62](index=62&type=chunk) Gross Merchandise Volume (GMV) Comparison | Period | June 30, 2022 (USD) | June 30, 2021 (USD) | | :--- | :--- | :--- | | **Non-related parties GMV** | $107,714,046 | $150,250,147 | | **Related party GMV** | $8,732,504 | $50,678,696 | | **Total GMV** | $116,466,550 | $200,928,843 | - For the six months ended June 30, 2022, the company generated **$3,556,596** in revenue from four third-party customers and **$288,337** from one related-party customer, Changtongfu[64](index=64&type=chunk) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2022 (USD) | December 31, 2021 (USD) | | :--- | :--- | :--- | | **Total Current Assets** | $15,639,121 | $16,436,393 | | **Total Assets** | $18,861,328 | $19,470,524 | | **Total Current Liabilities** | $3,421,093 | $2,998,960 | | **Total Liabilities** | $4,924,897 | $4,941,202 | | **Total Stockholders' Equity** | $13,936,431 | $14,529,322 | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2022 (USD) | Three Months Ended June 30, 2021 (USD) | Six Months Ended June 30, 2022 (USD) | Six Months Ended June 30, 2021 (USD) | | :--- | :--- | :--- | :--- | :--- | | **Total Service Revenue** | $1,608,080 | $3,882,893 | $3,844,933 | $6,663,816 | | **Gross Profit** | $1,517,429 | $3,692,434 | $2,965,094 | $6,327,049 | | **Net Income / (Loss)** | ($442,637) | $1,842,030 | $118,218 | $2,494,114 | | **EPS (basic and diluted)** | ($0.00) | $0.01 | $0.00 | $0.01 | Condensed Statements of Cash Flows (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2022 (USD) | Six Months Ended June 30, 2021 (USD) | | :--- | :--- | :--- | | **Net cash from operating activities** | $6,491,363 | ($541,827) | | **Net cash used in investing activities** | ($648,389) | ($170,265) | | **Net cash from/(used in) financing activities** | $842,547 | ($420,562) | | **Cash and cash equivalents, end of period** | $7,152,073 | $3,210,464 | - On April 13, 2022, the company canceled **120,418,995 shares** of Common Stock, reducing outstanding shares from 305,451,498 to 185,032,503[98](index=98&type=chunk) - Subsequent to the reporting period, on July 21, 2022, the company uplisted to the Nasdaq Capital Market and closed an IPO of **10,000,000 shares at $4.00 per share**, expecting net proceeds of approximately **$37.1 million**[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue and net income declines to decreased GMV from COVID-19 lockdowns; cash improved significantly from receivables collection [Results of Operations (Six Months Ended June 30, 2022 vs 2021)](index=18&type=section&id=Results%20of%20Operations%20for%20the%20six%20months%20period%20ended%20June%2030%2C%202022%20and%202021) H1 2022 revenue decreased **42.3%** to **$3.84 million**, and net income plummeted **95.3%**, primarily due to lower GMV from COVID-19 lockdowns Six-Month Operational Results Comparison | Metric | Six Months Ended June 30, 2022 (USD) | Six Months Ended June 30, 2021 (USD) | | :--- | :--- | :--- | | **Total Revenue** | $3,844,933 | $6,663,816 | | **Gross Profit** | $2,965,094 | $6,327,049 | | **Net Income** | $118,218 | $2,494,114 | - The decrease in revenue was mainly due to a decline in Gross Merchandise Volume (GMV) in the YCloud system, a result of Covid-19 lockdowns in several major PRC cities since March 2022[106](index=106&type=chunk) - General and administrative expenses decreased from **$3.66 million** to **$2.79 million**, primarily because no advertising, exhibition, or legal due diligence expenses were incurred during the period due to the lockdown[109](index=109&type=chunk) [Results of Operations (Three Months Ended June 30, 2022 vs 2021)](index=19&type=section&id=Results%20of%20Operations%20for%20the%20three%20months%20period%20ended%20June%2030%2C%202022%20and%202021) Q2 2022 saw a net loss of **$442,637** (vs. Q2 2021 net income), driven by a **58.6%** revenue decline and increased marketing expenses Three-Month Operational Results Comparison | Metric | Three Months Ended June 30, 2022 (USD) | Three Months Ended June 30, 2021 (USD) | | :--- | :--- | :--- | | **Total Revenue** | $1,608,080 | $3,882,893 | | **Operations Profit / (Loss)** | ($465,093) | $1,924,977 | | **Net Income / (Loss)** | ($442,637) | $1,842,030 | - The company shifted from a net income of **$1.84 million** in Q2 2021 to a net loss of **$442,637** in Q2 2022, primarily due to the decrease in GMV-based revenue caused by COVID-19 lockdowns[113](index=113&type=chunk) - General and administrative expenses increased from **$1.77 million** to **$1.98 million** in the quarter, as more marketing and promotion expenses were incurred compared to the prior period[112](index=112&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Cash on hand increased to **$7.15 million** as of June 30, 2022, driven by **$8.2 million** in accounts receivable collection and positive operating cash flow - Cash on hand increased to **$7,152,073** as of June 30, 2022, mainly due to the collection of approximately **$8.2 million** in accounts receivables[114](index=114&type=chunk) - Net cash provided by operating activities was **$6,491,363**, a turnaround from cash used of **$541,827** in the prior period, driven by increased collections from customers[115](index=115&type=chunk) - Cash used in investing activities increased to **$648,389** from **$170,265**, mainly due to additions to leasehold improvements[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk - As a **"smaller reporting company"** defined by Regulation S-K, the company is not required to provide the information for this item[120](index=120&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2022, due to material weaknesses like lack of audit committee and insufficient oversight - Management concluded that disclosure controls and procedures were **not effective** as of June 30, 2022[122](index=122&type=chunk) - Material weaknesses identified include: lack of an audit committee, lack of a majority of outside directors, management domination by two individuals, lack of internal audit functions, and lack of segregation of duties within accounting[122](index=122&type=chunk)[123](index=123&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[126](index=126&type=chunk) [PART II – Other Information](index=22&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[128](index=128&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) As a "smaller reporting company," the company is not required to provide this information - The company is a **"smaller reporting company"** and is not required to provide the information contained in this item[128](index=128&type=chunk) [Unregistered Sales of Equity Securities And Use Of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20And%20Use%20Of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds for the period - None[128](index=128&type=chunk) [Other Information](index=22&type=section&id=Item%205.%20Other%20information) The company reported no other information for the period - None[128](index=128&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) The report includes certifications from the Principal Executive Officer and Principal Financial Officer, along with financial statements in XBRL format - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[129](index=129&type=chunk) - Financial statements for the quarter ended June 30, 2022, are provided in XBRL format[129](index=129&type=chunk)

PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2022, including balance sheets, operations, cash flows, and equity, with notes on business and a subsequent share cancellation [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets increased slightly to **$20.06 million**, driven by a substantial rise in cash and cash equivalents to **$7.57 million** from **$0.62 million**, while total liabilities remained stable Condensed Consolidated Balance Sheet (Unaudited) | Account | March 31, 2022 (USD) | December 31, 2021 (USD) | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | 7,568,537 | 616,593 | | Accounts receivables | 958,797 | 5,627,463 | | Account receivable- related party | 36,083 | 3,603,402 | | **Total Assets** | **20,063,610** | **19,470,524** | | **Total Liabilities** | **4,938,843** | **4,941,202** | | **Total Stockholders' Equity** | **15,124,767** | **14,529,322** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2022, total service revenue decreased to **$2.24 million** from **$2.78 million** year-over-year, resulting in lower gross profit of **$1.45 million** and net income of **$560,855** Condensed Consolidated Statements of Operations (Unaudited) | Account | Three Months Ended March 31, 2022 (USD) | Three Months Ended March 31, 2021 (USD) | | :--- | :--- | :--- | | Total service revenue | 2,236,853 | 2,780,923 | | Cost of revenue | (789,188) | (146,308) | | **Gross profit** | **1,447,665** | **2,634,615** | | General and Administrative | 805,268 | 1,889,190 | | **Operations profit** | **642,397** | **745,425** | | **Net income** | **560,855** | **652,084** | | Basic and diluted net income per share | 0.00 | 0.00 | [Condensed Statements of Cash Flows](index=4&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$7.42 million** in Q1 2022, primarily due to accounts receivable collection, while **$0.72 million** was used in investing activities Condensed Statements of Cash Flows (Unaudited) | Account | For the Period March 31, 2022 (USD) | For the Period March 31, 2021 (USD) | | :--- | :--- | :--- | | Net cash flows provided by/(used in) operating activities | 7,420,490 | (560,646) | | Net cash used in investing activities | (723,420) | - | | Net cash flows provided by/(used in) financing activities | 259,840 | (1,408,683) | | **Change in cash and cash equivalents** | **6,951,944** | **(1,967,663)** | | Cash and cash equivalents, end of period | 7,568,537 | 2,672,940 | [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's 'YCloud' social e-commerce platform business, revenue model based on GMV, new customer agreements, and a significant subsequent event involving the cancellation of **120.4 million** common shares - The company's business is providing technical services and solutions via its social e-commerce platform, 'YCloud', to micro-business online stores in China[19](index=19&type=chunk) - In Q1 2022, the company entered into YCloud system service agreements with three new customers: Beijing Yidong Linglong Cultural Media Co., Ltd., Beijing Maitu International Travel Agency Co., Ltd, and Beijing Youth Travel Service Co., Ltd[22](index=22&type=chunk)[23](index=23&type=chunk) - Revenue is derived from system service fees of **2%-3.5%** of the total Gross Merchandise Volume (GMV) generated on the YCloud platform[66](index=66&type=chunk) Gross Merchandise Volume (GMV) | Period | March 31, 2022 (USD) | March 31, 2021 (USD) | | :--- | :--- | :--- | | Non-related parties | 62,943,846 | 80,402,192 | | Related party | 4,800,846 | - | | **Total GMV** | **67,744,692** | **80,402,192** | - Subsequent Event: On April 13, 2022, the company cancelled **120,418,995** shares of Common Stock, reducing the total outstanding shares from **305,451,498** to **185,032,503** as of May 23, 2022[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial results, noting a revenue decrease to **$2.24 million** due to lower GMV from COVID-19 lockdowns, a decline in net income, and improved liquidity driven by **$8.2 million** in accounts receivable collection - The decrease in revenue for Q1 2022 was mainly due to a decrease in Gross Merchandise Volume (GMV) in the Ycloud system as a result of Covid-19 lockdowns in certain main cities in PRC since March 2022, partially mitigated by the addition of **3** new customers[108](index=108&type=chunk) - General and administrative expenses decreased significantly to **$805,268** from **$1,889,190** in the prior-year period, mainly due to a reduction in advertising, exhibition, and legal expenses[111](index=111&type=chunk) - Cash on hand increased to **$7,568,537**, primarily due to the collection of approximately **$8.2 million** in accounts receivables from customers and a related party during the period[114](index=114&type=chunk) - Net cash from operating activities increased by approximately **$7.9 million** year-over-year, mainly due to the collection of accounts receivables[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is classified as a 'smaller reporting company' and is therefore not required to provide the quantitative and qualitative disclosures about market risk - As a 'smaller reporting company' as defined by Regulation S-K, the company is not required to provide the information for this item[120](index=120&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the company's disclosure controls and procedures and concluded they were not effective as of March 31, 2022, due to identified material weaknesses - Management concluded that the company's disclosure controls and procedures were **not effective** as of March 31, 2022[122](index=122&type=chunk) - Material weaknesses were identified, including: lack of an audit committee, lack of a majority of outside directors on the board, and management being dominated by two individuals without adequate compensating controls[122](index=122&type=chunk) - Additional weaknesses noted were a lack of segregation of duties within accounting functions and the lack of multiple levels of review of accounting data[123](index=123&type=chunk) PART II – Other Information [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that there are no legal proceedings - None[126](index=126&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) As a 'smaller reporting company,' the company is not required to provide risk factor disclosures in its 10-Q report - The company is a 'smaller reporting company' and as such is not required to provide the information contained in this item[126](index=126&type=chunk) [Unregistered Sales of Equity Securities And Use Of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20And%20Use%20Of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds during the period - None[126](index=126&type=chunk) [Defaults Upon Senior Securities](index=21&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company had no senior securities issued and outstanding during Q1 2022, thus no defaults to report - No senior securities were issued and outstanding during the three months ended March 31, 2022[127](index=127&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - Not applicable to our Company[128](index=128&type=chunk) [Other Information](index=21&type=section&id=Item%205.%20Other%20information) This section discloses a significant corporate action: the cancellation of **120,418,995** common shares in April 2022, reducing total outstanding shares to **185,032,503** - On April 13, 2022, the Company cancelled **120,418,995** shares of Common Stock, decreasing the outstanding shares from **305,451,498** to **185,032,503**[128](index=128&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including certifications from the CEO and CFO and financial statements in XBRL format - The report includes certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002 and financial statements formatted in XBRL[129](index=129&type=chunk)

[Cover Page](index=1&type=section&id=Cover%20Page) This is an Annual Report on Form 10-K for WeTrade Group Inc. for the fiscal year ended December 31, 2021 - This is an Annual Report on Form 10-K for WeTrade Group Inc. for the fiscal year ended December 31, 2021[1](index=1&type=chunk) - The registrant is a smaller reporting company and an emerging growth company[3](index=3&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, identified by terms like "may," "will," "expect," and "believe" - The report contains forward-looking statements subject to risks and uncertainties, identified by terms like "may," "will," "expect," and "believe." These statements are based on information available at the time and are not guarantees of future performance[10](index=10&type=chunk)[11](index=11&type=chunk) - Key risk factors include the ability to raise capital, identify and execute acquisitions, general economic conditions, and significant competition[12](index=12&type=chunk) [PART I](index=3&type=section&id=PART%20I) [Business](index=3&type=section&id=Item%201.%20Business) WeTrade Group Inc. provides technical services and solutions through its social e-commerce platform, primarily the "YCloud" system, targeting micro-businesses in China [Overview](index=3&type=section&id=Overview) The company provides technical and auto-billing management services to micro-business online stores in China via its independently developed social e-commerce platform, "YCloud" - WeTrade Group Inc. is a technology service provider focused on social e-commerce, utilizing its proprietary "YCloud" system[14](index=14&type=chunk) - The YCloud system's main functions include managing user marketing relationships, CPS commission profit management, multi-channel data statistics, AI fission and management, and supply chain systems[16](index=16&type=chunk) - The company provides YCloud access to two primary customers, Weijiafu and Changtongfu, who in turn serve micro-business owners and businesses in the hotel and travel industries[15](index=15&type=chunk) [Corporate History and Structure](index=4&type=section&id=Corporate%20History%20and%20Structure) WeTrade Group, Inc. was incorporated in Wyoming in 2019, operating through wholly-owned subsidiaries in Singapore, Hong Kong, and mainland China - The company operates through a multi-layered corporate structure with a US parent company and subsidiaries in Singapore, Hong Kong, and mainland China[17](index=17&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Our Industry](index=5&type=section&id=Our%20Industry) The company operates in China's growing social e-commerce market, targeting micro-businesses, which is projected to expand significantly - The target market of micro-businesses in China is projected to grow from **60 million people in 2019 to 330 million in 2023**[23](index=23&type=chunk)[25](index=25&type=chunk) - The company operates within the S2B2C (Supplier-to-Business-to-Consumer) model, connecting suppliers with small shop owners who then manage sales to consumers[24](index=24&type=chunk) - Key competitors in the third-party service provider space include Weimob (**15.3% market share**) and Youzan (**7.3% market share**)[26](index=26&type=chunk) [YCloud System](index=6&type=section&id=YCloud) YCloud is presented as the first global micro-business cloud intelligence system, offering integrated payment processing, AI-driven user analysis, and cross-platform supply chain integration - YCloud provides integrated payment methods and analytics, allowing micro-business owners to accept payments through various channels while managing revenue through a single system[28](index=28&type=chunk)[29](index=29&type=chunk) - The system uses AI to analyze user behavior across multiple apps to provide tailored recommendations and displays[32](index=32&type=chunk) - It features a supply chain system that integrates supply, sales, finance, and service, connecting suppliers and customers seamlessly[32](index=32&type=chunk) [Revenue Model](index=7&type=section&id=Revenue%20Model) The company's revenue is derived from service fees charged for transactions conducted through the YCloud platform, ranging from **2% to 3.5% of Gross Merchandise Volume (GMV)** - Revenue is generated from service fees calculated as a percentage of Gross Merchandise Volume (GMV)[37](index=37&type=chunk) - The service fee rate ranges from **2% to 3.5% of GMV**[37](index=37&type=chunk) [Growth Strategy](index=8&type=section&id=Growth%20Strategy) The company's growth strategy focuses on expanding its micro-business user base, entering new industries, forming strategic partnerships, and pursuing global expansion - Core Business Growth: Capitalize on the expected increase of micro-business runners in China to **330 million by 2023**[42](index=42&type=chunk) - New Industry Expansion: Target industries like beauty, tourism, hospitality, and live commerce[43](index=43&type=chunk) - Global Expansion: Plan to cooperate with international social media platforms including Kakao Talk, Line, and Whatsapp[44](index=44&type=chunk) [Intellectual Property](index=9&type=section&id=Intellectual%20Property) The company protects its technology through a portfolio of intellectual property, including registered copyrights for its software systems, a trademark, and several domain names Registered Copyrights | Copyright Number | Issue Date | Category | Copyright Name | |---|---|---|---| | 2020SR0413838 | 2020/05/07 | Software | WePay System V1.0 | | 2020SR0318464 | 2020/04/09 | Software | Yueshang Social E-commerce Revenue Management System | | 2020SR1899615 | 2020/12/25 | Software | Changtongfu Revenue Management System V1.0 | | 2020SR1918178 | 2020/12/30 | Software | Zhinengfu Revenue Management System V1.0 | | 2021SR0044549 | 2021/01/08 | Software | Micro-business Cloud Intelligent System V1.0 | - The company owns one trademark registered in Singapore and six domain names, including ycloud.online and wetradegroup.net[49](index=49&type=chunk)[51](index=51&type=chunk) [Employees](index=10&type=section&id=Employees) As of the report date, the company had **76 full-time employees**, with the technology department comprising the largest portion at **46 employees** Employees by Function | Functional Area | Number of Employees | |---|---| | Technology | 46 | | General and Administrative | 8 | | Financial Department | 9 | | Strategic Department | 5 | | Human Resource | 4 | | Operating | 4 | | **Total** | **76** | [Regulations](index=10&type=section&id=Regulations) The company's operations are subject to a complex set of laws and regulations in both the People's Republic of China (PRC) and Hong Kong, covering areas like internet security, foreign investment, and taxation - In the PRC, the company is subject to the Cyber Security Law, which governs the collection, use, and protection of personal data[58](index=58&type=chunk)[59](index=59&type=chunk) - Foreign investment is governed by the Foreign Investment Law and the Negative List, with the company's PRC subsidiary, Yueshang Beijing, being a Wholly Foreign-invested Enterprise[61](index=61&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk) - The company is subject to PRC Enterprise Income Tax (EIT) at a rate of **25%** for its resident enterprises and a Value-added Tax (VAT) rate of **6%**[75](index=75&type=chunk)[78](index=78&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure for this item is not required because WeTrade Group Inc. is a smaller reporting company[92](index=92&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - There are no unresolved staff comments as of the report date[92](index=92&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) The company's principal executive office is a leased space of **6,216.64 square meters** in Beijing, China, with a monthly rent of approximately **RMB 414,106** Principal Office Lease Details | Address | Space (sq. meters) | Lease Term | Average Monthly Rent | |---|---|---|---| | No. 18, Kechuang 10th Street, Beijing Economic and Technological Development Zone, Beijing, China | 6,216.64 | Sep 16, 2020 - Sep 15, 2025 | RMB 414,105.93 | [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings and is not aware of any pending or potential legal actions - There are no active or threatened legal proceedings against the company[95](index=95&type=chunk) [Mine Safety Disclosures](index=16&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's business - Not applicable[95](index=95&type=chunk) [PART II](index=16&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=16&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) As of December 31, 2021, there were approximately **370 holders of record** of the company's common stock, with no cash dividends declared or equity repurchases made - As of December 31, 2021, there were approximately **370 holders of record** of common stock[96](index=96&type=chunk) - The company has not paid cash dividends and intends to retain earnings for business development[97](index=97&type=chunk) - No equity securities were repurchased by the company during the fiscal year ended December 31, 2021[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%206.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's revenue grew significantly from **$6.3 million in 2020 to $14.4 million in 2021**, driven by increased Gross Merchandise Volume (GMV), with net income rising to **$5.2 million** [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Total revenue increased by **129% to $14.4 million in FY2021** from **$6.3 million in FY2020**, primarily due to a substantial increase in Gross Merchandise Volume (GMV) Results of Operations (FY2021 vs. FY2020) | Metric | FY 2021 | FY 2020 | |---|---|---| | Total Revenue | $14,381,295 | $6,271,564 | | Gross Profit | $11,699,356 | $5,655,969 | | General & Admin | ($5,705,063) | ($1,901,336) | | Operations Profit | $5,994,293 | $3,754,633 | | Net Income | $5,175,675 | $2,675,037 | Gross Merchandise Volume (GMV) (FY2021 vs. FY2020) | GMV Source | 2021 US$ | 2020 US$ | |---|---|---| | Non-related party | 292,177,817 | 10,437,687 | | Related party | 139,359,179 | 153,038,677 | | **Total** | **431,536,996** | **163,476,364** | [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2021, total assets were **$19.5 million** and total liabilities were **$4.9 million**, with cash decreasing to **$0.6 million** primarily due to a **$3.8 million** cash outflow from operating activities Balance Sheet Summary (As of Dec 31) | Metric | 2021 | 2020 | |---|---|---| | Cash and Cash equivalents | $616,593 | $4,640,603 | | Total Assets | $19,470,524 | $13,542,707 | | Total Liabilities | $4,941,202 | $4,648,822 | | Total Stockholders' Equity | $14,529,322 | $8,893,885 | - Net cash used in operating activities was **$3.75 million in 2021**, a significant shift from **$1.16 million provided by operating activities in 2020**, mainly due to a **$3.9 million increase in trade receivables** and a **$2.9 million increase in prepaid expenses**[114](index=114&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%209.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of December 31, 2021, due to identified material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of the end of the reporting period[125](index=125&type=chunk) - Material weaknesses in internal control over financial reporting were identified, including issues with internal audit functions, segregation of duties, and lack of multiple review levels[128](index=128&type=chunk) [PART III](index=21&type=section&id=PART%20III) [Directors, Executive Officers, and Corporate Governance](index=21&type=section&id=Item%2010.%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) The company is led by a board of nine directors, a majority of whom are independent, with key executive officers including Zheng Dai (Chairman), Pijun Liu (CEO), and Kean Tat Che (CFO) Key Directors and Executive Officers | Name | Age | Position | |---|---|---| | Zheng Dai | 46 | Director and Chairman of the Board | | Pijun Liu | 39 | Chief Executive Officer and Director | | Kean Tat Che | 39 | Chief Financial Officer, Secretary and Director | | Zhuo Li | 33 | Chief Operation Officer and Director | | Biming Guo | 49 | Independent Director, Chair of Audit Committee | - The Board of Directors consists of **nine members**, with a majority being independent[146](index=146&type=chunk) - The company has established an Audit Committee, a Compensation Committee, and a Nominating Committee, with specified compositions and responsibilities[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) [Executive Compensation](index=25&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation for 2021 included salaries and bonuses for key officers, with all amounts accrued and deferred, contingent upon the company's Nasdaq listing 2021 Named Executive Officer Compensation | Name and Principal Position | Salary ($) | Bonus ($) | Total ($) | |---|---|---|---| | Pijun Liu, CEO | 80,000 | 8,000 | 88,000 | | Kean Tat Che, CFO | 50,000 | 5,000 | 55,000 | | Zheng Dai, CTO | 80,000 | 8,000 | 88,000 | | Zhuo Li, COO | 50,000 | 5,000 | 55,000 | - Compensation payments for named executive officers and independent directors have been deferred until the company is listed on Nasdaq[157](index=157&type=chunk)[161](index=161&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=26&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The company's ownership is concentrated among a few key entities and individuals, with Future Science and Technology Co Ltd holding **28.5%** and all executive officers and directors as a group owning approximately **39.86%** Beneficial Ownership | Owner | Percentage Ownership | |---|---| | Future Science and Technology Co Ltd (Zheng Dai) | 28.5% | | AiShangYou Limited | 26.8% | | LD Property Limited | 5.9% | | All executive officers and directors as a group | 39.86% | [Certain Relationships and Related Transactions, and Director Independence](index=27&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) The company engaged in several transactions with related parties, with amounts due to related parties totaling **$1.1 million** as of December 31, 2021 - The company has transactions with entities where its CEO, Liu Pijun, and other directors have beneficial interests[167](index=167&type=chunk) Amount Due to Related Parties (as of Dec 31, 2021) | Item | Amount | |---|---| | Related parties payable | $745,532 | | Director fee payable | $360,000 | | **Total** | **$1,105,532** | - A related party loan of **$140,000** from Global Joy Trip Ltd was forgiven in January 2021 as the entity was dissolved[172](index=172&type=chunk) [Principal Accounting Fees and Services](index=28&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) The company incurred total fees of **$133,000** from its principal accountant in fiscal year 2021, primarily for audit services Accountant Fees (FY2021 vs. FY2020) | Fee Type | 2021 | 2020 | |---|---|---| | Audit Fees | $95,000 | $100,300 | | Tax Fees | $8,000 | $3,000 | | All Other Fees | $30,000 | $30,000 | | **Total Fees** | **$133,000** | **$133,300** | [PART IV](index=29&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=29&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the annual report, including consolidated financial statements and various certifications - The filing includes the consolidated financial statements for the years ended December 31, 2021 and 2020[183](index=183&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Sections 302 and 906 are filed with the report[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) [FINANCIAL STATEMENTS](index=30&type=section&id=FINANCIAL%20STATEMENTS) [Report of Independent Registered Public Accounting Firm](index=30&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor, TAAD LLP, issued an unqualified opinion on the consolidated financial statements for the years ended December 31, 2021 and 2020, confirming fair presentation in conformity with U.S. GAAP - The auditor, TAAD LLP, provided an unqualified (clean) opinion on the company's consolidated financial statements[188](index=188&type=chunk) - The audit was conducted in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB)[191](index=191&type=chunk) [Consolidated Financial Statements](index=31&type=section&id=Consolidated%20Financial%20Statements) This section contains the core consolidated financial statements of WeTrade Group Inc., including Balance Sheets, Statements of Operations, Statements of Changes in Stockholders' Equity, and Statements of Cash Flows Consolidated Net Income Per Share | Metric | 2021 | 2020 | |---|---|---| | Net Income | $5,175,675 | $2,675,037 | | Weighted average shares outstanding | 305,451,498 | 304,166,073 | | Net income per share - basic and diluted | $0.02 | $0.01 | [Notes to the Consolidated Financial Statements](index=34&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on the company's accounting policies and financial figures, covering revenue recognition, related party transactions, and significant receivables - Revenue is recognized based on a **2%-3.5% service fee** on the total Gross Merchandise Volume (GMV) generated through the YCloud platform[239](index=239&type=chunk) - A significant credit risk concentration exists, with **100% of the $9.2 million in accounts receivable** as of Dec 31, 2021, due from two main customers, with the balance fully settled post-reporting date[217](index=217&type=chunk)[255](index=255&type=chunk) - The company has a short-term note receivable of **$3.8 million** from a third party, bearing an annual interest rate of **5%** and maturing in November 2022[257](index=257&type=chunk) - The company's major operations are in the PRC, where the corporate income tax rate ranges from **9% to 25%**, and for FY2021, the company recorded an income tax expense of **$1,122,283**[279](index=279&type=chunk)[280](index=280&type=chunk)