Wetouch Technology Inc. reported a financial performance for the fiscal year ending December 31, 2025, with total revenues of approximately $45.1 million, reflecting a 6.6% increase from $42.3 million in 2024. The company's net income rose to $7.2 million, a 20% increase from the previous year's $6.0 million. Gross profit also saw an uptick, reaching $14.4 million, although the gross profit margin slightly decreased to 31.8% from 32.2% in 2024. The increase in revenue was attributed to a 6.5% rise in sales volume, alongside a marginal increase in the average selling price of products.
In terms of operational metrics, Wetouch shipped approximately 2.2 million touchscreens in 2025, up from 2.1 million in 2024. The company’s domestic sales accounted for about 68.5% of total revenues, up from 64.7% in the previous year, while international sales decreased to 31.5% from 35.3%. The company has established a diversified client base, with significant contributions from various sectors, including automotive, industrial control, and medical applications.
Strategically, Wetouch has been focused on expanding its production capabilities. The company is in the process of constructing a new facility in Chengdu, Sichuan Province, with an estimated completion date in the first half of 2027. The total capital requirement for this project is projected to be approximately $14.4 million. As of December 31, 2025, Wetouch had $118.4 million in cash and cash equivalents, which it plans to utilize for ongoing operations and the new facility construction.
The company has also faced challenges, including a significant reliance on a few major customers, which accounted for a substantial portion of its revenues. This dependency poses risks if the company fails to attract new customers or retain existing ones. Additionally, Wetouch is navigating regulatory complexities in China, which could impact its operations and financial performance. The company is committed to enhancing its internal controls and has identified material weaknesses in its financial reporting processes, which it is actively working to remediate.
Looking ahead, Wetouch anticipates continued growth driven by its strategic initiatives and market demand for its touchscreen products. However, the company acknowledges potential risks, including economic fluctuations, regulatory changes, and competition within the touchscreen industry, which could affect its future performance.
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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