Wetouch Technology Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $12.4 million, a slight increase from $12.2 million in the same period last year. For the first half of 2025, the company generated $27.7 million in revenue, compared to $27.1 million in the first half of 2024. Despite the revenue growth, the company experienced a decline in net income, which fell to $2.2 million for the second quarter, down from $2.7 million in the prior year. For the six months ended June 30, 2025, net income was $4.8 million, compared to $3.3 million in the same period of 2024.
The company's gross profit for the second quarter was $4.1 million, down from $4.9 million a year earlier, reflecting increased costs of revenues, which rose to $8.3 million from $7.4 million. Operating expenses also decreased slightly, totaling $1.03 million for the second quarter of 2025, compared to $1.14 million in the same quarter of 2024. The decline in profitability was attributed to higher costs associated with production and operational adjustments.
In terms of operational developments, Wetouch reported an increase in accounts receivable, which rose to $10.7 million as of June 30, 2025, compared to $7.5 million at the end of 2024. The company also noted a significant increase in cash reserves, which grew to $110.5 million from $103.8 million at the end of the previous fiscal year. The company’s employee headcount remained stable at 11,931, reflecting its commitment to maintaining its workforce amid ongoing operational challenges.
Wetouch has been focusing on strategic initiatives, including the construction of a new facility in Chengdu, which is expected to be completed by the end of 2025. The company has received support from local government initiatives, including a total of approximately $17.7 million to facilitate this construction. The new facility is anticipated to enhance production capabilities and support future growth. Additionally, Wetouch is navigating regulatory challenges in China, which may impact its operational flexibility and financial performance.
Looking ahead, Wetouch remains cautiously optimistic about its growth trajectory, emphasizing the importance of customer retention and acquisition in a competitive market. The company is also aware of potential risks, including reliance on key customers and fluctuations in raw material costs, which could affect its financial stability. Wetouch plans to continue monitoring market conditions and adjusting its strategies accordingly to ensure sustainable growth in the coming quarters.
About Wetouch Technology Inc.
Wetouch Technology Inc. designs and manufactures medium- to large-sized capacitive touchscreens for diverse industries including automotive, POS, gaming, medical, and industrial applications. Its products emphasize durability, high performance, and compliance with quality standards. Serving global markets, the company leverages direct sales, online marketing, and industry expos, with a focus on innovation, proprietary IP, and strong customer relationships in China and internationally.
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