The stock of Weidai Ltd. (NYSE: WEI) was up 13 cents on Tuesday, closed at $9.75 per American depositary share on higher revenue and income the company reported for the first quarter.
The Hangzhou-based company, an auto-secured financing platform, said in a statement Tuesday morning that its revenue in first quarter grew 1.6 percent year-over-year to $141.5 million. But representing a decrease of 4.4 percent quarter-over-quarter. The decrease attributed to lower loan facilitation service fees and post-facilitation service fees.
For the three months through March, Weidai reported its total loan balance decreased to $2.9 billion as of March 31. And its net income remained relatively stable at $16.2 million for the first quarter of 2019.
Provision for loans and advances decreased by 25.3 percent to $36.4 million in this period. And provision for loans and advances as a percentage of total loan volume remains higher than other quarters in 2018. Operating costs and expenses were $86.5 million in the first quarter, down 7 percent. Provision for financial guarantee liabilities gain an increase of 148.1 percent to $8 million, which is the biggest improvement in all deparment's expenses.
Weidai completed its initial public offering in November, raising $45 million for 4.5 million of its ADSs. Following the offering, the underwriters exercised their over-allotment option and purchased an additional 456,427 shares, bringing the total amount raised to $50 million.
Launched in 2011, Weidai was the first in China to introduce auto-backed financing in the form of a title loan with collateral registration equipped with a GPS, replacing the tradition of keeping automobiles in a lender's custody.