Weidai Ltd. Announces Unaudited Financial Results for the Six Months Ended June 30, 2021

HANGZHOU, China, Aug. 27, 2021 /PRNewswire/ -- Weidai Ltd. ("Weidai" or the "Company") (NYSE: WEI), a leading auto-backed financing solution provider in China, today announced its financial results for the six months ended June 30, 2021, which have not been audited or reviewed by the Company's independent registered accounting firm.

Six Months Ended June 30, 2021 Operational Highlights

Loan balance

Total loan balance as of June 30, 2021 was RMB2.3 billion (US$0.4 billion).

Six Months Ended June 30, 2021 Financial Results

Net revenues in the six months ended June 30, 2021 was RMB535.9 million (US$83.0 million). Among net revenues, loan service fees were RMB531.0 million (US$82.2 million), other revenues were RMB6.7 million (US$1.0 million) and net financing expense was RMB0.2 million (US$32 thousand).

Provision for loans and advances in the six months ended June 30, 2021 was RMB114.1 million (US$17.7 million).

Operating costs and expenses in the six months ended June 30, 2021 were RMB364.6 million (US$56.5 million). Among operating costs and expenses, provision for financial guarantee liabilities was RMB78.0 million (US$12.1 million), origination and servicing expenses were RMB200.0 million (US$31.0 million), sales and marketing expenses were RMB14.5 million (US$2.2 million), general and administrative expenses were RMB58.3 million (US$9.0 million), and research and development expenses were RMB13.8 million (US$2.1 million). Share-based compensation expenses in the six months ended June 30, 2021 were RMB5.5 million (US$0.9 million), which are included in origination and servicing expenses, general and administrative expenses and research and development expenses.

Income from Operations in the six months ended June 30, 2021 was RMB57.2 million (US$8.9 million).

Income tax expenses in the six months ended June 30, 2021 were RMB453.0 million (US$70.2 million).

Net loss in the six months ended June 30, 2021 was RMB397.1 million (US$61.5 million).

Net loss attributable to Weidai Ltd.'s ordinary shareholders in the six months ended June 30, 2021 was RMB395.5 million (US$61.2 million).

Adjusted net loss in the six months ended June 30, 2021 was RMB391.6 million (US$60.7 million).

Regulatory Developments

In July 2021, Weidai, in coordination with the relevant governmental authorities, commenced the repayment of outstanding net principal balances to all investors (the aggregate principal invested by a certain investor minus the aggregate amount that has been withdrawn by such investor) on the Company's platform. As of the date of this earnings release, all such outstanding net principal balances on Weidai's platform have been fully repaid.

Use of Non-GAAP Financial Measures

The Company uses adjusted net loss, a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that adjusted net loss helps identify underlying trends in its business by excluding the impact of share-based compensation expenses. The Company believes that adjusted net loss provides useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

Adjusted net loss is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider it in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on this non-GAAP financial measure, please see the table captioned "Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release.

About Weidai Ltd.

Weidai Ltd. is a pioneer and leading auto-backed financing solution provider in China supported by sophisticated and effective risk management system and technology. The Company transforms used automobiles, a type of "non-standard" collateral, into investable assets, to provide accessible credit for China's small and micro enterprises, and connects the borrowers with institutional funding partners through its platform.

For more information, please visit https://weidai.investorroom.com/.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the noon buying rate on June 30, 2021 set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Weidai may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Weidai's beliefs and expectations, are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited the following: Weidai's goal and strategies; Weidai's expansion plans; Weidai's future business development, financial condition and results of operations; Weidai's expectations regarding demand for, and market acceptance of, its solutions and services; Weidai's expectations regarding keeping and strengthening its relationships with borrowers, investors and financial institutions and other platform participants; general economic and business conditions; Weidai's assumptions underlying or related to any of the foregoing regulations and governmental policies relating to the online consumer finance industry in China; and Weidai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Weidai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Christensen
Mr. Rene Vanguestaine
Tel: +86-10-5900-1548
E-mail: rvanguestaine@christensenir.com

In US:

Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
E-mail: lbergkamp@christensenir.com

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SOURCE Weidai Ltd.