Wetouch Revenue Climbs 6.5% to $42.3M Amid Strategic Shifts

TL;DR

**WETH's revenue growth is decent, but watch out for customer concentration and Chinese regulatory risks; it's a speculative play.**

AI Summary

Wetouch Technology Inc. (WETH) reported a revenue increase of 6.5% to $42.3 million for the fiscal year ended December 31, 2024, up from $39.7 million in 2023. The company specializes in medium- to large-sized projected capacitive touchscreens, serving industries like financial terminals, automotive, and medical. Domestic sales accounted for 64.7% of revenues in 2024, a decrease from 69.7% in 2023, while international sales grew to 35.3% from 30.3%. Key business changes include a private placement in January 2023 raising $40 million through the sale of 160,000,000 shares at $0.25 per share, and a 1-for-20 reverse stock split effective September 12, 2023. Risks include significant reliance on top customers, substantial accounts receivable, and potential adverse regulatory developments in Mainland China. The strategic outlook focuses on maintaining product quality with ISO9001 and ISO14001 certifications and expanding its diversified client base globally.

Why It Matters

Wetouch Technology's modest revenue growth and strategic shifts, including a significant private placement and reverse stock split, signal a company actively trying to reposition itself. For investors, the increased international sales to 35.3% suggest potential market diversification, but the heavy reliance on top customers and substantial accounts receivable pose ongoing risks. Employees and customers might see stability in the company's commitment to quality standards like ISO9001. In the competitive touchscreen display industry, WETH's ability to adapt to new technologies and secure land use rights in China will be crucial for long-term viability and market share.

Risk Assessment

Risk Level: high — The company faces high risk due to significant reliance on top customers, as explicitly stated in the filing: 'Our reliance on our top customers is significant. Failure to attract new customers or retain existing ones cost-effectively could materially and adversely impact our business.' Additionally, the filing highlights 'Adverse regulatory developments in Mainland China may subject us to additional regulatory review, restrictions, disclosure requirements, and regulatory scrutiny by the SEC, increasing compliance costs and hindering future securities offerings,' which adds substantial geopolitical and operational uncertainty.

Analyst Insight

Investors should approach WETH with caution, given the high risk profile. Monitor customer concentration and any developments in Chinese regulatory policy closely. Consider this a speculative investment, and allocate capital accordingly, perhaps as a small portion of a diversified portfolio.

Financial Highlights

revenue

$42.3M

revenue Growth

+6.5%

Revenue Breakdown

Key Numbers

• $42.3M — Revenue for 2024 (Increased from $39.7 million in 2023, representing a 6.5% growth.)
• $39.7M — Revenue for 2023 (Baseline for 2024 revenue comparison.)
• 64.7% — Domestic sales percentage in 2024 (Decreased from 69.7% in 2023, indicating a shift towards international markets.)
• 35.3% — International sales percentage in 2024 (Increased from 30.3% in 2023, showing growth in global reach.)
• $40.0M — Proceeds from private placement (Raised in January 2023 by selling 160,000,000 shares at $0.25 per share.)
• 1-for-20 — Reverse stock split ratio (Approved July 16, 2023, and effective September 12, 2023, impacting share count and price.)
• $31,379,934 — Aggregate market value of non-affiliate common stock (As of June 28, 2024, reflecting market capitalization.)
• 11,931,534 — Shares of common stock outstanding (As of September 8, 2025, post-reverse stock split.)
• $1.2M — Agent fees for private placement (Paid in February 2024, related to the January 2023 private placement.)
• 7.0 inch to 42-inch — Touchscreen product size range (Indicates the company's specialization in medium- to large-sized touchscreens.)

Key Players & Entities

• Wetouch Technology Inc. (company) — Registrant
• Sichuan Vtouch Technology Co., Ltd. (company) — Mainland China subsidiary
• David Lazar (person) — Former Custodian and officer/director
• Jiaying Cai (person) — President, secretary, treasurer, and sole director
• Guangde Cai (person) — Former Chairman and Director
• Nasdaq Stock Market LLC (regulator) — Exchange where common stock is registered
• SEC (regulator) — U.S. Securities and Exchange Commission
• PCAOB (regulator) — Public Company Accounting Oversight Board
• Custodian Ventures LLC (company) — Former custodian of the Company
• Qixun Technology (Samoa) Limited (company) — Buyer in stock purchase agreement

FAQ

Risk Factors

• Reliance on Top Customers [high — financial]: The company's business is subject to significant concentration risk due to its reliance on a few major customers. A substantial portion of revenue is derived from these key clients, making the company vulnerable to changes in their purchasing patterns or business relationships.
• Substantial Accounts Receivable [medium — financial]: Wetouch Technology Inc. carries substantial accounts receivable, which poses a credit risk. Significant outstanding receivables could lead to potential bad debts if customers fail to meet their payment obligations, impacting cash flow and profitability.
• Adverse Regulatory Developments in Mainland China [medium — regulatory]: The company operates in Mainland China and is subject to its evolving regulatory landscape. Potential adverse changes in PRC laws and regulations could negatively impact its operations, compliance costs, and overall business environment.
• Product Quality and Certifications [medium — operational]: Maintaining product quality is crucial, with ISO9001 and ISO14001 certifications being key. Any failure to uphold these standards or maintain certifications could damage the company's reputation and affect its ability to serve its target industries.
• Competition in Touchscreen Market [medium — market]: The company operates in a competitive market for medium- to large-sized projected capacitive touchscreens. Intense competition from domestic and international players could pressure pricing and market share.

Industry Context

Wetouch Technology Inc. operates in the competitive market for medium- to large-sized projected capacitive touchscreens. Key industries served include financial terminals, automotive, and medical, which demand high reliability and specific performance characteristics. The company competes by focusing on product quality, evidenced by ISO certifications, and by offering a range of structural types like GG, GFF, PG, and GF to meet diverse application needs.

Regulatory Implications

The company's operations in Mainland China expose it to potential risks from evolving PRC laws and regulations. Compliance with domestic and international standards, such as RoHS, is critical. Maintaining certifications like ISO9001 and ISO14001 is essential for market access and customer trust, and any adverse regulatory changes could impact business operations.

What Investors Should Do

1. Monitor customer concentration risk
2. Assess accounts receivable management
3. Evaluate international sales growth
4. Track competitive landscape and pricing

Key Dates

• 2023-01-01: Private Placement — Raised $40 million through the sale of 160,000,000 shares at $0.25 per share, strengthening the company's financial position.
• 2023-09-12: Reverse Stock Split — A 1-for-20 reverse stock split was effective, impacting the number of outstanding shares and potentially the stock price.
• 2024-12-31: Fiscal Year End — Reported revenues of $42.3 million, a 6.5% increase from the previous year.

Glossary

Projected Capacitive Touchscreens

A type of touchscreen technology that uses electrostatic fields to detect touch input, allowing for multi-touch capabilities and durability. (This is the core product technology of Wetouch Technology Inc.)

Glass-Glass (GG)

A touchscreen structure where a layer of glass is placed over another layer of glass, often used for durability and optical clarity in demanding applications. (One of the structural types of touch panels offered by Wetouch.)

Glass-Film-Film (GFF)

A touchscreen structure consisting of a glass layer and two film layers, typically used for high-end applications requiring good optical performance. (Another structural type of touch panel offered by Wetouch.)

Plastic-Glass (PG)

A touchscreen structure that combines plastic and glass layers, offering a balance of cost, durability, and performance. (A structural type of touch panel offered by Wetouch, suitable for various applications.)

Glass-Film (GF)

A touchscreen structure composed of a glass layer and a single film layer, often used in industrial settings. (A structural type of touch panel offered by Wetouch, particularly for industrial HMI.)

ISO9001

An international standard for Quality Management Systems (QMS), ensuring that organizations meet customer and regulatory requirements. (Wetouch holds this certification, indicating a commitment to product quality.)

ISO14001

An international standard for Environmental Management Systems (EMS), helping organizations manage their environmental responsibilities. (Wetouch holds this certification, demonstrating its commitment to environmental sustainability.)

RoHS

Restriction of Hazardous Substances, an EU directive that restricts the use of specific hazardous materials found in electrical and electronic products. (Wetouch's products undergo RoHS testing, ensuring compliance with environmental regulations.)

Year-Over-Year Comparison

Wetouch Technology Inc. reported a 6.5% revenue increase to $42.3 million for the fiscal year ended December 31, 2024, compared to $39.7 million in 2023. This growth was accompanied by a strategic shift, with domestic sales decreasing as a percentage of revenue (64.7% vs. 69.7%) while international sales increased (35.3% vs. 30.3%). No new significant risks were highlighted, but existing concerns regarding customer concentration, accounts receivable, and Chinese regulatory developments remain pertinent.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share WETH The Nasdaq Stock Market
• $42.3 million — 4 and 2023, we recognized approximately $42.3 million and $39.7 million, respectively, in rev
• $39.7 m — ognized approximately $42.3 million and $39.7 million, respectively, in revenues. We s
• $40,000,000 — pany for an aggregate purchase price of $40,000,000, or $0.25 per share. The net proceeds o
• $0.25 — egate purchase price of $40,000,000, or $0.25 per share. The net proceeds of the offe
• $1.2 m — rm (see Note 10) on the agent fees of US$1.2 million, payable only on the completion o
• $5.00 — er share, at a public offering price of $5.00 per share. The 2024 Uplisting Offering
• $10.8 million — 3, 2024 and generated gross proceeds of $10.8 million. We paid a total of approximately $0.8
• $0.8 million — llion. We paid a total of approximately $0.8 million in underwriting discounts and commissio
• $9.2 million — ng Offering expenses, was approximately $9.2 million. We also issued the Representatives' Wa
• $1.00 m — liance; a notice of deficiency with the $1.00 minimum bid price requirement; and a chan

Filing Documents

• ea0238106-10k_wetouch.htm (10-K) — 1483KB
• ea023810601ex4-2_wetouch.htm (EX-4.2) — 6KB
• ea023810601ex10-30_wetouch.htm (EX-10.30) — 13KB
• ea023810601ex31-1_wetouch.htm (EX-31.1) — 16KB
• ea023810601ex31-2_wetouch.htm (EX-31.2) — 16KB
• ea023810601ex32-1_wetouch.htm (EX-32.1) — 6KB
• ea023810601ex32-2_wetouch.htm (EX-32.2) — 7KB
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• image_012.jpg (GRAPHIC) — 5KB
• image_013.jpg (GRAPHIC) — 61KB
• image_014.jpg (GRAPHIC) — 117KB
• 0001213900-25-086651.txt ( ) — 7655KB
• weth-20241231.xsd (EX-101.SCH) — 61KB
• weth-20241231_cal.xml (EX-101.CAL) — 51KB
• weth-20241231_def.xml (EX-101.DEF) — 293KB
• weth-20241231_lab.xml (EX-101.LAB) — 550KB
• weth-20241231_pre.xml (EX-101.PRE) — 314KB
• ea0238106-10k_wetouch_htm.xml (XML) — 667KB

BUSINESS

ITEM 1. BUSINESS 1

RISK FACTORS

ITEM 1A. RISK FACTORS 25

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 51

CYBERSECURITY

ITEM 1C. CYBERSECURITY 51

PROPERTIES

ITEM 2. PROPERTIES 52

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 54

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 54 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 55

[RESERVED]

ITEM 6. [RESERVED] 55

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 56

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 70

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 70

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 70

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 71

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 72

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 72 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 73

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 77

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 81

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 83

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 84 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 85

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 88

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F-1 i COMMONLY USED DEFINED TERMS Unless otherwise indicated or the context requires otherwise, references in this Annual Report on Form 10-K (the "Annual Report") to: "China," "Chinese," or the "PRC" are to the People's Republic of China, including the special administrative regions of Hong Kong and Macau, and, for the purposes of this annual report only, excluding Taiwan; "BVI" are to the British Virgin Islands; "BVI Wetouch" are to Wetouch Holding Group Limited, a limited company organized under the laws of British Virgin Islands and a wholly owned subsidiary of Wetouch; "Hong Kong Wetouch" are to Hong Kong Wetouch Electronics Technology Limited (), a limited company organized under the laws of Hong Kong and a wholly owned subsidiary of BVI Wetouch. On June 18, 2021, Hong Kong Wetouch submitted its application for dissolution and was dissolved on March 18, 2022. "HK Wetouch" are to Hong Kong Wetouch Technology Limited (), a limited company organized under the laws of Hong Kong and a wholly owned subsidiary of BVI Wetouch; "Mainland China" are to the mainland of the People's Republic of China; excluding Taiwan and the special administrative regions of Hong Kong and Macau for the purposes of this prospectus only; "PRC laws and regulations" or "PRC laws" are to the laws and regulations of Mainland China; "Sichuan Wetouch" are to Sichuan Wetouch Technology Co., Ltd (), a limited liability company organized under the PRC laws and prior wholly foreign owned subsidiary of Hong Kong Wetouch. Sichuan Wetouch's business and operations have been assumed by Sichuan Vtouch; "Sichuan Vtouch" are to Sichuan Vtouch Technology Co., Ltd (), a limited liability company organized under the PRC laws and a wholly foreign owned subsidiary of HK Wetouch; "Shares," "shares" or "shares of common stock" are to the shares of common stock of Wetouch Technology Inc., with par value of $0.001 per share; "Renminbi," "RMB" o

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report, including, without limitation, statements under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," includes forward-looking statements within the meaning of Section 27A of the Securities Act (as defined below) and Section 21E of the Exchange Act (as defined below). Forward-looking statements generally relate to future events or our future financial or operating performance and may include statements concerning, among other things, financial results; business plans; future liabilities and other obligations; impairments and amortization; estimates of the financial impact of certain items, accounting treatment, events or circumstances; and capital allocation. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the reasons described in our "Business," "Risk Factors," and "Management Discussion and Analysis of Financial Condition and Result of Operations" sections, as well as those discussed elsewhere in this Annual Report. In some cases, you can identify these forward-looking statements by terms such as "anticipate," "believe," "continue," "could," "depends," "estimate," "expects," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," "assumption" or "judgment" or the negative of those terms or other similar expressions, although not all forward-looking These forward-looking statements present our estimates and assumptions only as of the date of this Annual Report and are subject to several known and unknown risks, uncertainties, and assumptions. Accordingly, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. There can be no assurance that actual results will not materially differ from expectations. These statements are based on management's cur

BUSINESS

ITEM 1. BUSINESS Overview Through our wholly-owned subsidiaries, we are engaged in the research, development, manufacturing, sales and servicing of medium- to large-sized projected capacitive touchscreens. We specialize in large-format touchscreens, which are developed and designed for a wide variety of markets and used in the financial terminals, automotive, Point of Sales, gaming, lottery, medical, Human-Machine Interface ("HMI"), and other specialized industries. Our product portfolio comprises medium- to large-sized projected capacitive touchscreens ranging from 7.0 inch to 42-inch screens. In terms of the structures of touch panels, we offer (i) Glass-Glass ("GG"), primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial HMI, financial and banking terminals, POS and lottery machines; (ii) Glass-Film-Film ("GFF"), mostly used in high-end GPS and entertainment panels, industrial HMI, financial and banking terminals, and the lottery and gaming industry; (iii) Plastic-Glass ("PG"), typically adopted by touchscreens in GPS/entertainment panels, motor vehicle GPS, smart home, robotics and charging stations; and (iv) Glass-Film ("GF"), mostly used in industrial HMI. Maintaining the industry standards for product quality and sustainability is one of our core values. Touchscreens produced by us not only have long life span with low maintenance, but also have strong anti-interference and anti-corrosion solutions, coupled with multi-touch capability and high light-transmittance ratio and stability. As a technology company, Sichuan Vtouch Technology Co., Ltd., our subsidiary in Mainland China ("Sichuan Vtouch") has received certifications from domestic and international institutions, such as ISO9001 Quality Management Systems (QMS) Certification of Registration, ISO 14001 Environmental Management System (EMS) Certification of Registration, and RoHS SGS Certification (Restriction of Hazardous Substance Testing Certification). We generat

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