Weidai's Revenue, Net Income Slip in Q2
Weidai Ltd. (NYSE: WEI) reported lower revenue and income for the second quarter amid challenging regulatory conditions in China's lending industry.
The provider of auto-backed financing solutions, based in Hangzhou, said its revenue was $132.1 million in the three months through June, down 4 percent year-over-year. Net income was $15.6 million, a drop of 41 percent from the same period last year.
The company's total loan balance in the second quarter was $2.7 billion, Weidai said in a statement today.
Weidai held its initial public offering on the New York Stock Exchange in November. The company raised $45 million for its 4.5 million American depositary shares sold at the offer price of $10.00 per share.
The company announced it has changed its custodian bank from Xiamen Bank to Sichuan Xinwang Bank Co. Ltd., a privately owned Internet bank in China, last month.
The stock in Weidai inched 1 cent lower Wednesday, to $6.39 per share.