Weidai Ltd. (WEI) is providing financing solutions for automobile-backed industry in China. The company is engaged in the transformation of secondhand autos into investable possessions. The company also utilizes sophisticated and efficient risk management technology for its customers.
The price of WEI stock during the regular trading on January 25, 2022 was $2.22 with a steep rise of 345%. At last check in the premarket on January 26, 2022, the stock further inclined by 26% to $2.82 thanks to an ADS ratio change that’s equivalent to a five-for-one reverse stock split.
WEI: Events and Happenings
On January 25, 2022, WEI reported about changing the ratio of the company’s American Depositary Shares. The impact of modification will be seen at the start of trading on January 26. The modification succeeds the previous strategy of 3:1 share change ratio.
On November 18, 2021, WEI reported about holding of annual general meeting of the company’s stockholders on December 15, 2021. The meeting served as an open discussion forum for stockholders. On September 24, 2021, WEI reported about receipt of notification from NYSE as the company’s ADS was below the standard compliance price.
WEI: Key Financials
On August 27, 2021, WEI reported its financial results for the first fiscal six months ended June 30, 2021. Some of the key updates are as follows.
Revenue
Net revenue in H1 2021 was recorded to be RMB535.9 million.
Net Loss per Share
Basic and diluted net loss during the first half of 2021 was RMB397.1 million or RMB5.61 per share.
Conclusion
WEI stock is performing great in the market as it gained 116% from the past six months despite the challenges faced due to deteriorating economic conditions. The current premarket stock surge is the result of company’s updated ratio change of shares. The analysts are predicting this bloom in the stock will help the company to gain additional benefits from different investors.
