Wetouch Technology Inc. Reports Revenue Growth and Stable Net Income in Q2 2026

Wetouch Technology Inc. reported its financial results for the second quarter and first half of 2026, showing a notable increase in revenue and profitability compared to the same period in 2025. For the three months ended June 30, 2026, the company generated revenues of $14.0 million, a 12.9% increase from $12.4 million in the prior year. Gross profit for the quarter rose to $4.9 million, up 19.5% from $4.1 million, resulting in a gross profit margin of 34.9%, compared to 33.1% in the same quarter of 2025. Net income remained stable at $2.2 million for both periods.

In the first half of 2026, Wetouch's revenues reached $30.3 million, reflecting a 9.4% increase from $27.7 million in the first half of 2025. The gross profit for this period was $10.7 million, a 10.3% increase from $9.7 million, with a gross profit margin of 35.3%, slightly up from 35.2% in the previous year. The company reported a net income of $6.0 million for the first six months, a significant increase of 25% compared to $4.8 million in the same period last year.

Operationally, Wetouch saw an increase in total units shipped, with 663,555 units sold in the second quarter of 2026, up 7.8% from 615,742 units in the same quarter of 2025. The company continues to focus on high-end touchscreen products, which have driven revenue growth. The domestic market in China accounted for approximately 68.6% of total revenue in the second quarter, while international sales contributed 31.4%. The company is also expanding its geographic reach, with sales in regions such as Taiwan and South Korea.

Wetouch's financial position remains strong, with total assets of $152.6 million as of June 30, 2026, compared to $140.6 million at the end of 2025. The company reported current assets of $138.0 million, including $127.5 million in cash and cash equivalents. Current liabilities stood at $3.8 million, resulting in a healthy liquidity position. The company has committed approximately $1.08 million for ongoing construction of a new facility, which is expected to be completed by the first half of 2027.

Looking ahead, Wetouch plans to continue its focus on product innovation and market expansion, particularly in high-demand sectors such as automotive and medical touchscreens. The company is also evaluating potential financing options to support its growth initiatives. Despite the challenges posed by market conditions and regulatory environments in China, Wetouch remains optimistic about its future performance and the potential for continued revenue growth.