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Weidai Reports Slightly Higher Earnings, But Total Loan Balance Decreases

Amid market uncertainty, Weidai's total loan balance for the third quarter decreased to $3 billion from $3.25 billion as of June 30.

Shirley Tian
    Dec 11, 2018 3:22 PM  PT
Weidai Reports Slightly Higher Earnings, But Total Loan Balance Decreases

Weidai Ltd. (NYSE: WEI), an auto-secured financing platform, reported slightly higher revenue and earnings for the third quarter, but its total loan balance decreased nearly 8 percent compared with the prior three months.

The Hangzhou-based company said its revenue for the third quarter was $150.9 million, an increase of 9.3 percent from $138.1 million compared with its second quarter, driven by a jump in loan facilitation service fees and post-facilitation service fees. 

As a result of increased marketing activities in the third quarter, Weidai's sales and marketing expenses increased by nearly 30 percent to $11.2 million. As a result, Weidai's net income for the past quarter was $27.3 million, compared to $26.86 million in the previous quarter. 

Amid market uncertainty, Weidai's total loan balance for the third quarter decreased to $3 billion from $3.25 billion as of June 30, the company said.

Following its first earnings report as a public company, shares of Weidai dropped 1 cent today to close at $10 per share in New York. 

On Nov. 19, Weidai premiered on the New York Stock Exchange, selling 4.5 million American depositary shares at $10 per share. Each ADS represents one Class A ordinary share of the company.

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