Weidai Q1 Earnings Send its Stock 3% Higher
The stock of Weidai Ltd. (NYSE: WEI) closed up 13 cents on Tuesday, at $9.75 per American depositary share, on higher revenue and income 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 2 percent year-over-year to $141.5 million. The decrease of 4 percent from the year-end was 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, while net income remained level from a year ago, at $16.2 million.
Operating costs and expenses were $86.5 million in the first quarter, down 7 percent, according to the report.
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.