Weidai
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Weidai (微贷网, Weidai Ltd., NYSE: WEI) was a Hangzhou-based online lender founded in 2011, the first Chinese company to provide car-backed loans through a GPS-enabled mobile app. It matched small-enterprise borrowers with retail and institutional investors, holding a 35% P2P market share in 2017, and listed on the New York Stock Exchange in late 2018.
02 / Weidai FAILURE REASONS
Failure reasons
Beijing's regulatory crackdown shrank China's P2P sector from 2,680 platforms in 2016 to 343 in 2019, forcing small and mid-sized platforms to shut down. Weidai's loan-loss provisions surged 65% to ¥1.24 billion in 2019, its net profit plunged 65%, and its share price fell 90% from its $13.20 peak. The company exited P2P lending by June 2020 and reported a ¥714.3 million (approx US$109.5 million) net loss for 2020, leading to NYSE delisting proceedings in May 2022.
03 / EVENT HISTORY
Events in the structured record
- Founded
Weidai is founded in Hangzhou, pioneering GPS-enabled car-backed microloans via a mobile app.
- NYSE listing
Weidai Ltd. lists on the NYSE (ticker WEI) in late 2018; shares peak at $13.20 in February 2019.
- P2P exit
Facing tighter regulation, Weidai exits the online lending intermediary business by June 30, 2020, relying on institutional partners for funding. It repays all outstanding investor principal by July 2021, and reports a ¥714.3 million ($109.5 million) net loss for 2020.
- Delisting
On May 16, 2022, the NYSE suspends trading in WEI and commences delisting proceedings after the company's market capitalization falls below $15 million.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
In May 2020, Weidai announced its exit from the online lending intermediary business by June 30, 2020, amid China's P2P regulatory crackdown.
- 02
In July 2021, the company repaid all outstanding net principal balances to investors on its platform.
- 03
On May 16, 2022, the NYSE suspended trading in Weidai's ADSs and commenced delisting proceedings for falling below the $15 million market-cap listing standard.