[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's analysis of operations, market risk disclosures, and controls and procedures for the period ended June 30, 2021 [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements for the period ended June 30, 2021, show significant growth in revenue and net income compared to the prior year, with total assets increasing to $15.7 million driven by higher receivables and prepayments [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2021, total assets grew to **$15.7 million** from **$13.5 million** at year-end 2020, primarily due to increases in accounts receivable, note receivable, and prepayments, leading to a significant increase in total stockholders' equity to **$11.5 million** Balance Sheet Summary (as of June 30, 2021 vs. Dec 31, 2020) | Metric | June 30, 2021 ($) | Dec 31, 2020 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 12,903,623 | 10,415,582 | | **Total Assets** | 15,725,732 | 13,542,707 | | **Total Current Liabilities** | 2,030,207 | 2,177,224 | | **Total Liabilities** | 4,217,568 | 4,648,822 | | **Total Stockholders' Equity** | 11,508,164 | 8,893,885 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported substantial year-over-year growth for the six months ended June 30, 2021, with revenue reaching **$6.66 million**, a significant increase from **$0.88 million** in the prior-year period, and net income rising to **$2.49 million** from **$0.57 million** Six Months Ended June 30, 2021 vs 2020 | Metric | Six Months 2021 ($) | Six Months 2020 ($) | | :--- | :--- | :--- | | **Total Service Revenue** | 6,663,816 | 876,363 | | **Gross Profit** | 6,327,049 | 876,363 | | **Profit from Operations** | 2,670,403 | 578,665 | | **Net Income** | 2,494,114 | 566,233 | | **EPS (basic and diluted)** | 0.01 | 0.00 | Three Months Ended June 30, 2021 vs 2020 | Metric | Three Months 2021 ($) | Three Months 2020 ($) | | :--- | :--- | :--- | | **Total Service Revenue** | 3,882,893 | 855,293 | | **Gross Profit** | 3,692,434 | 855,293 | | **Profit from Operations** | 1,924,977 | 582,685 | | **Net Income** | 1,842,030 | 570,253 | | **EPS (basic and diluted)** | 0.01 | 0.00 | [Consolidated Statements of Cash Flows](index=4&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2021, the company experienced a net cash outflow of **$1.43 million**, reducing its cash balance to **$3.21 million**, primarily due to increases in receivables and prepayments despite a net income of **$2.49 million** Cash Flow Summary (Six Months Ended June 30, 2021 vs 2020) | Metric | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | (962,389) | (1,199,684) | | **Net Cash Used in Investing Activities** | (170,265) | 0 | | **Net Cash Provided by Financing Activities** | 0 | 219,202 | | **Change in Cash and Cash Equivalents** | (1,430,139) | (1,041,102) | | **Cash and Cash Equivalents, End of Period** | 3,210,464 | 5,550,026 | [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's business, accounting policies, and specifics of financial statement line items, including its 'YCloud' social e-commerce platform in China, revenue generation from service fees, and a significant short-term note receivable - The company's business involves providing technical services and solutions via its membership-based social e-commerce platform, **'YCloud'**, to micro-business online stores in China[19](index=19&type=chunk) - Revenue is generated from service fees, typically **3.5%** of the total Gross Merchandise Volume (GMV) generated on the platform[58](index=58&type=chunk) - For the six months ended June 30, 2021, the company generated **$6,663,816** in revenue from two customers[58](index=58&type=chunk) - The company has a short-term note receivable of **RMB 30 million** (approx. **$4.65 million**) from a third party, with an annual interest rate of **5%**, maturing on November 4, 2021, with a balance of **$3,665,808** as of June 30, 2021[70](index=70&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant revenue increase for the three and six-month periods ended June 30, 2021, to new customer acquisition, with corresponding rises in expenses due to increased payroll for new staff, and a decrease in cash position due to a new short-term loan and prepayments Results of Operations (Six Months Ended June 30) | Metric | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | **Revenue** | 6,663,816 | 876,363 | | **Gross Profit** | 6,327,049 | 876,363 | | **General & Administrative Expenses** | (3,656,646) | (297,698) | | **Net Income** | 2,494,114 | 566,233 | - The increase in revenue for the six months ended June 30, 2021, was mainly due to service revenue generated from new customers[91](index=91&type=chunk) - The increase in general and administrative expenses was mainly due to higher payroll expenses from new staff recruited for software development[92](index=92&type=chunk) - Cash on hand decreased to **$3,210,464** as of June 30, 2021, mainly due to an additional short-term loan of approximately **$1.37 million** to a third party and prepayment of office furniture[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a 'smaller reporting company,' the company is not required to provide this information - As a 'smaller reporting company' as defined by Item 10(f)(1) of Regulation S-K, the company is not required to provide quantitative and qualitative disclosures about market risk[104](index=104&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2021, due to identified material weaknesses, despite believing the financial statements are materially correct - Management concluded that disclosure controls and procedures were **not effective** as of the period ending June 30, 2021[106](index=106&type=chunk) - Material weaknesses identified include: lack of an audit committee, lack of a majority of outside directors, management dominated by two individuals, lack of segregation of duties within accounting, and lack of multiple levels of review of accounting data[106](index=106&type=chunk)[107](index=107&type=chunk) [PART II – OTHER INFORMATION](index=19&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, other miscellaneous items, and a list of exhibits filed with the report [Legal Proceedings](index=19&type=section&id=Item%201.%20Legal%20Proceedings) The company was not subject to any legal proceedings during the three months ended June 30, 2021, and is not aware of any threatened or pending proceedings - The company was not subject to any legal proceedings during the quarter ended June 30, 2021[112](index=112&type=chunk) [Risk Factors](index=19&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 information on risk factors in its Form 10-Q[113](index=113&type=chunk) [Unregistered Sales of Equity Securities And Use Of Proceeds](index=19&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20And%20Use%20Of%20Proceeds) There were no recent sales of unregistered securities as of June 30, 2021, with a total of **305,451,498** outstanding shares - As of June 30, 2021, there were no recent sales of unregistered securities, and total outstanding shares were **305,451,498**[113](index=113&type=chunk) [Other Items (3, 4, 5)](index=19&type=section&id=Other%20Items%20%283%2C%204%2C%205%29) The company reported no defaults upon senior securities, no mine safety disclosures as it is not applicable, and no other information to disclose for the period - Item 3: No defaults upon senior securities were reported[114](index=114&type=chunk) - Item 4: Mine safety disclosures are not applicable[114](index=114&type=chunk) - Item 5: No other information was reported[114](index=114&type=chunk) [Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including officer certifications (Sarbanes-Oxley Sections 302 and 906) and Inline XBRL data files - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002[115](index=115&type=chunk) - Inline XBRL documents are included as exhibits[115](index=115&type=chunk)

Part I [Business](index=3&type=section&id=Item%201.%20Business) WeTrade Group Inc. provides technical services and solutions via its membership-based social e-commerce platform, centered on the 'YCloud' system for micro-businesses in China - The company's core business is providing technical services and solutions via its social e-commerce platform, centered around the independently developed **"YCloud" system** for micro-businesses in China[12](index=12&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 an improved supply chain system[15](index=15&type=chunk) - The company's primary competitor is identified as **China Youzan Limited**, with WeTrade differentiating itself by focusing on the micro-business industry and digital transaction simplicity[24](index=24&type=chunk) - As of the report date, the company has **89 full-time employees**, with **60 personnel in Research & Development**, accounting for **64.5%** of the total workforce[48](index=48&type=chunk) Intellectual Property Summary | Type | Count | | :--- | :--- | | Registered Copyrights | 2 | | Registered Trademarks | 4 | | Registered Domain Names | 4 | [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from evolving markets, reliance on third-party platforms, external events like pandemics, and potential data security breaches - The company's success is contingent on its ability to develop new products and adapt to rapid technological changes in e-commerce, mobile commerce, and payment integration services[49](index=49&type=chunk)[51](index=51&type=chunk) - The business is dependent on the ability of its products to integrate with various operating systems and e-commerce platforms like **WeChat**, and changes in these systems could adversely affect the company[53](index=53&type=chunk) - The **COVID-19 pandemic** is identified as a significant risk factor that has caused a severe decline in global travel and could materially affect the company's business and financial condition[55](index=55&type=chunk)[56](index=56&type=chunk) - Operations are vulnerable to interruptions or failures of its technology systems or those of third-party providers, which could damage the company's reputation and harm operating results[57](index=57&type=chunk)[58](index=58&type=chunk) - The business involves collecting and storing users' personal data, making it vulnerable to cyberattacks and security breaches, which could lead to significant legal, regulatory, and financial exposure[60](index=60&type=chunk)[62](index=62&type=chunk) [Unresolved Staff Comments](index=11&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[63](index=63&type=chunk) [Properties](index=12&type=section&id=Item%202.%20Properties) The company details its leased properties, including a new headquarters lease in Beijing effective from September 2020 to September 2025 New Headquarters Lease Details | Lease Term | Address | Space (sqm) | Avg. Monthly Rent (RMB) | | :--- | :--- | :--- | :--- | | Sep 16, 2020 to Sep 15, 2025 | No. 18, Kechuang 10th Street, Beijing | 6,216.64 | 414,105.93 | [Legal Proceedings](index=12&type=section&id=Item%203.%20Legal%20Proceedings) The company states that it is not currently involved in any legal proceedings and is not aware of any pending or potential legal actions - The company is not currently involved in any legal proceedings[66](index=66&type=chunk) [Mine Safety Disclosures](index=12&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[66](index=66&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=12&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) As of December 31, 2020, the company had approximately 370 common stock holders, with no cash dividends declared or equity compensation plans in place - As of December 31, 2020, there were approximately **370 holders** of record of the company's common stock[68](index=68&type=chunk) - The company has not declared any cash dividends and intends to retain future earnings to finance business development and expansion[69](index=69&type=chunk) - As of December 31, 2020, there were no compensation plans for equity security issuance and no recent sales of unregistered securities[70](index=70&type=chunk)[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%206.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company reported $6.27 million in revenue and $2.68 million net income in 2020, a significant turnaround from 2019, with growth in assets and positive operating cash flow Results of Operations (2020 vs. 2019) | Metric | FY 2020 | FY 2019 | | :--- | :--- | :--- | | **Total Revenue** | **$6,271,564** | **$0** | | Gross Profit | $5,655,969 | - | | General & Admin Expenses | ($1,901,336) | ($417,407) | | **Net Income / (Loss)** | **$2,675,037** | **($417,407)** | Balance Sheet Summary (As of Dec 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Cash and Cash equivalents | $4,640,603 | $6,591,128 | | Total Assets | $13,542,707 | $6,591,128 | | Total Liabilities | $4,648,822 | $1,786,515 | | Total Stockholders' Equity | $8,893,885 | $4,804,613 | - Cash provided by operating activities increased by approximately **$1.3 million**, from a use of **$130,892** in 2019 to a provision of **$1,162,337** in 2020[91](index=91&type=chunk) - Cash used in financing activities was **$3.68 million** in 2020, a shift from cash provided by financing activities of **$6.72 million** in 2019, mainly due to loan repayments to related parties and new loans to third parties[92](index=92&type=chunk) [Controls and Procedures](index=15&type=section&id=Item%209.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 31, 2020, due to identified material weaknesses in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were **not effective** as of the end of the period covered by the report[93](index=93&type=chunk) - **Material weaknesses** were identified in internal control over financial reporting, related to: (i) internal audit functions; (ii) a lack of segregation of duties within accounting; and (iii) the lack of multiple levels of review of accounting data[95](index=95&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=16&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section outlines the company's directors, executive officers, Board committee structures, and notes the absence of a formal Code of Ethics Directors and Executive Officers | Name | Age | Title | | :--- | :--- | :--- | | Zheng Dai | 45 | Chairman of the Board | | Pijun Liu | 38 | Chief Executive Officer and Director | | Kean Tat Che | 38 | Chief Financial Officer, Secretary and Director | | Zhuo Li | 32 | Chief Operation Officer and Director | | Donghui Wang | 49 | Independent Director and Chair of Audit Committee | | Daxue Li | 50 | Independent Director and Chair of Compensation Committee | | Yuxing Ye | 41 | Independent Director and Chair of Nominating Committee | | Hung Fai Choi | 35 | Independent Director | | Ning Qin | 39 | Independent Director | - The Board has established an Audit Committee, a Compensation Committee, and a Nominating Committee, with charters approved by the Board[113](index=113&type=chunk) - The company has not adopted a formal Code of Ethics, with the Board determining that general rules of fiduciary duty and existing laws are adequate ethical guidelines for its current operational size[120](index=120&type=chunk) [Executive Compensation](index=18&type=section&id=Item%2011.%20Executive%20Compensation) The company details executive and director compensation effective March 1, 2021, with no stock options exercised or long-term incentive awards made in the last fiscal year - Effective March 1, 2021, Chairman Zheng Dai and CEO Pijun Liu are entitled to a monthly salary of **$8,000** each[111](index=111&type=chunk) - Effective March 1, 2021, CFO Kean Tat Che and COO Zhuo Li are entitled to a monthly salary of **$5,000** each[111](index=111&type=chunk) - Effective March 1, 2021, all independent non-executive directors are entitled to a monthly salary of **$2,000**[112](index=112&type=chunk) - No stock options were exercised by executive officers, and no awards were made under any Long-Term Incentive Plan in the last fiscal year[113](index=113&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=21&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details beneficial ownership of common stock, with directors and executive officers collectively owning 39.86% and key 5% holders identified Security Ownership of Major Holders | Name of Beneficial Owner | Percent of Class | | :--- | :--- | | **Directors and Executive Officers (as a group)** | **39.86%** | | Zheng, Dai | 28.5% | | **5% Security Holders** | | | Future Science and Technology Co Ltd | 28.5% | | AiShangYou Limited | 26.8% | | LD Property Limited | 5.9% | [Certain Relationships and Related Transactions, and Director Independence](index=22&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company reports no material related party transactions exceeding specified thresholds involving directors, executive officers, or major shareholders in the last two fiscal years - No director, executive officer, or shareholder holding at least **5%** of shares had any material interest in any transaction exceeding the lesser of **$120,000** or **1%** of the average total assets for the last two completed fiscal years[125](index=125&type=chunk) [Principal Accountant Fees and Services](index=22&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The report discloses principal accountant fees for 2020 and 2019, totaling $280,300 and $282,000 respectively, primarily for audit and other services Accountant Fees (2019-2020) | Year | Audit Fees | Audit Related Fees | Tax Fees | All Other Fees | Total Fees | | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | $100,300 | $0 | $3,000 | $180,000 | $280,300 | | 2019 | $37,000 | $0 | $0 | $245,000 | $282,000 | Part IV [Exhibits, Financial Statement Schedules](index=22&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists documents filed as part of the annual report, including financial statements and various corporate and SEC-required certifications - The report includes the Reports of Independent Registered Public Accounting Firm and the following financial statements for the years ended December 31, 2020 and 2019: Balance Sheets, Statements of Operations, Statements of Stockholders' Equity, and Statements of Cash Flows[129](index=129&type=chunk)[130](index=130&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm](index=24&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) TAAD LLP issued an unqualified opinion on the consolidated financial statements for 2020 and 2019, affirming fair presentation in conformity with U.S. GAAP - The auditor, TAAD LLP, expressed an unqualified opinion that the consolidated financial statements present fairly, in all material respects, the financial position of the Company in conformity with U.S. generally accepted accounting principles[140](index=140&type=chunk) - The audit was conducted in accordance with PCAOB standards, and the auditor was not engaged to perform an audit of the company's internal control over financial reporting[142](index=142&type=chunk) [Consolidated Financial Statements](index=25&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for 2020 show significant growth in revenue and net income, with total assets increasing to $13.5 million and cash decreasing due to financing activities Consolidated Balance Sheet Data (As of Dec 31) | | 2020 | 2019 | | :--- | :--- | :--- | | **Total Assets** | **$13,542,707** | **$6,591,128** | | Total Current Assets | $10,680,492 | $6,591,128 | | **Total Liabilities** | **$4,648,822** | **$1,786,515** | | Total Current Liabilities | $2,177,224 | $1,786,515 | | **Total Stockholders' Equity** | **$8,893,885** | **$4,804,613** | Consolidated Statement of Operations Data (Year Ended Dec 31) | | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | **$6,271,564** | **$0** | | Gross Profit | $5,655,969 | - | | **Net Income / (Loss)** | **$2,675,037** | **($417,407)** | | Comprehensive Income (Loss) | $3,253,772 | ($417,407) | | **EPS (basic and diluted)** | **$0.01** | **($0.00)** | Consolidated Statement of Cash Flows Data (Year Ended Dec 31) | | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,162,337 | ($130,892) | | Net Cash from Financing Activities | ($3,682,142) | $6,722,020 | | **Change in Cash** | **($1,950,525)** | **$6,591,128** | | Cash at End of Period | $4,640,603 | $6,591,128 | [Notes to Financial Statements](index=28&type=section&id=Notes%20to%20Financial%20Statements) The notes detail revenue recognition from YCloud GMV, the adoption of ASC 842 for leases, related party balances, and subsequent events including a new loan and customized YCloud system development - Revenue is derived from service fees, charged at **2%-3.5%** of the total Gross Merchandise Volume (GMV) generated on the **YCloud platform**, through an agreement with Weijiafu[184](index=184&type=chunk) - The company adopted the new lease standard **ASC 842**, resulting in the recognition of a **$2,813,186** right-of-use asset and **$3,041,463** in lease liabilities on the December 31, 2020 balance sheet[175](index=175&type=chunk) - As of December 31, 2020, the amount due to related parties was **$416,500**, consisting of a **$140,000** loan from a company owned by Director Dai Zheng and **$276,500** in advances from directors[198](index=198&type=chunk)[202](index=202&type=chunk) - Subsequent to year-end, on January 27, 2021, the company appointed a third-party to develop a customized YCloud system for a PRC tobacco company at an estimated total cost of **RMB 7 million (approx. $1.08 million)**[206](index=206&type=chunk)

10-Q 1 wtg_10q.htm FORM 10-Q Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller Reporting Company ☒ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2020 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ...

10-Q 1 wtg_10q.htm FORM 10-Q Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller Reporting Company ☒ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2020 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____ ...

10-Q 1 wtg_10q.htm FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2020 ¨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 small business issuer as specified in its charter) WYOMING (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2019 ¨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) | --- | --- | |------------------------------------------------------------ ...

Cautionary Note Regarding Forward-Looking Statements [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements based on current information which are subject to risks and not guarantees of future performance - Forward-looking statements are subject to risks and uncertainties that could cause **actual results to differ materially**[6](index=6&type=chunk) - Key risk factors include the ability to execute growth strategies, find manufacturing partners, and navigate **general economic conditions**[8](index=8&type=chunk) - The company has **no obligation to update** forward-looking statements to reflect subsequent events or circumstances[9](index=9&type=chunk) PART I – Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements for the period ending September 30, 2019, show no revenue and a net loss for the early-stage company Condensed Balance Sheet as of September 30, 2019 | Account | Amount ($) | | :--- | :--- | | **Assets** | | | Cash | 221,511 | | **Total Assets** | **221,511** | | **Liabilities & Stockholders' Deficit** | | | Accrued Expenses | 110,000 | | Amount due to Shareholders | 144,501 | | **Total Liabilities** | **254,501** | | **Total Stockholders' Deficit** | **(32,990)** | Condensed Statement of Operations (Unaudited) | Period | 3 months ended Sep 30, 2019 | From Inception (Mar 28, 2019) to Sep 30, 2019 | | :--- | :--- | :--- | | Revenue | $0 | $0 | | General and Administrative Expenses | 255,010 | 110,921 | | **Net Loss** | **($255,010)** | **($110,921)** | Condensed Statement of Cash Flows (From Inception to Sep 30, 2019) | Cash Flow Activity | Amount ($) | | :--- | :--- | | Net Cash Used in Operating Activities | (509) | | Net Cash Provided by Financing Activities | 222,020 | | **Change in Cash** | **221,511** | | **Cash at End of Period** | **221,511** | - The company was incorporated on March 28, 2019, and is developing an online e-commerce platform for travel products in China[18](index=18&type=chunk)[19](index=19&type=chunk) - As of September 30, 2019, the company had an outstanding loan of **$144,500** from its directors, which is unsecured and interest-free[39](index=39&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's early-stage status, attributing the net loss to administrative expenses and reliance on founder and equity financing - The company is an early-stage business whose activities have been limited to formation and raising equity capital[44](index=44&type=chunk)[46](index=46&type=chunk) Results of Operations Summary | Period | Revenue ($) | General & Administrative Expense ($) | Net Loss ($) | | :--- | :--- | :--- | :--- | | Inception to Sep 30, 2019 | 0 | 255,010 | (255,010) | | Three months ended Sep 30, 2019 | 0 | 110,921 | (110,921) | - As of September 30, 2019, the company had **$221,511 in cash** and has relied on funds from founders and capital raises[53](index=53&type=chunk) - Financing activities provided **$222,020 in cash** from the issuance of 74,000 shares to new shareholders[56](index=56&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=16&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exempt from market risk disclosures as it qualifies as a "smaller reporting company" - As a **"smaller reporting company"** defined by Item 10(f)(1) of Regulation S-K, the company is not required to provide the information for this item[60](index=60&type=chunk) [Controls and Procedures](index=16&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses like a lack of an audit committee and independent directors - Management concluded that disclosure controls and procedures were **not effective** due to limited internal resources and lack of multiple levels of transaction review[63](index=63&type=chunk) - Identified material weaknesses include the **lack of an audit committee**, a lack of a majority of outside directors, and management domination by two individuals without compensating controls[63](index=63&type=chunk) - There were **no changes** in internal control over financial reporting during the most recently completed fiscal quarter[65](index=65&type=chunk) PART II – Other Information [Legal Proceedings](index=17&type=section&id=Item%201.%20Legal%20Proceedings) The company was not involved in any legal proceedings during the nine months ended September 30, 2019 - The company was **not subject to any legal proceedings** during the nine months ended September 30, 2019[67](index=67&type=chunk) [Risk Factors](index=17&type=section&id=Item%201.%20A%20Risk%20Factors) The company is not required to provide information on risk factors as it qualifies as a "smaller reporting company" - As a **"smaller reporting company,"** the company is not required to provide the information contained in this item[68](index=68&type=chunk) [Unregistered Sales of Equity Securities And Use Of Proceeds](index=17&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20And%20Use%20Of%20Proceeds) The company issued an additional 74,000 shares to 13 new shareholders during the nine months ended September 30, 2019 - The company issued an additional **74,000 shares** to 13 shareholders during the nine months ended September 30, 2019[69](index=69&type=chunk) [Defaults Upon Senior Securities](index=17&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company had no senior securities issued or outstanding during the nine months ended September 30, 2019 - **No senior securities** were issued and outstanding during the period[70](index=70&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - **Not applicable** to the Company[70](index=70&type=chunk) [Other Information](index=17&type=section&id=Item%205.%20Other%20information) There is no other information to report for this period - **None**[70](index=70&type=chunk) [Exhibits](index=18&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including corporate governance documents and Sarbanes-Oxley certifications - The report includes exhibits such as Amended and Restated Articles of Incorporation, By-Laws, and officer certifications pursuant to the **Sarbanes-Oxley Act of 2002**[72](index=72&type=chunk) Signatures [Signatures](index=19&type=section&id=Signatures) The quarterly report was duly authorized and signed on November 13, 2019, by the CEO and CFO - The report was signed on November 13, 2019, by **Zheng, Dai (Chief Executive Officer)** and **Kean Tat, Che (Chief Financial Officer)**[74](index=74&type=chunk)