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.
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.