WeTouch Technology Inc. Reports First Half Fiscal Year 2025 Financial Results: Net Income Up 45.5% Year-over-Year; Cash Reaches $9.26 Per Share

Rhea-AI Summary

WeTouch Technology (NASDAQ:WETH) reported first-half fiscal 2025 results for the period ended June 30, 2025. Total revenue was $27.7M (+2.2% YoY). Gross profit rose to $9.8M and gross margin expanded to 35.2% (up 500 bps). Net income was $4.8M (+45.5% YoY) and basic EPS was $0.40. Operating cash flow turned positive to $4.7M from negative $5.3M a year earlier. Cash reserves totaled $110.5M (~$9.26 per share). Unit shipments reached 1.38M units (+8.9% YoY) with China unit sales up 14.5%. Chengdu production facility remains on schedule for completion by end-2025.

Positive

• Net income +45.5% YoY to $4.8M
• Gross margin expanded 500 bps to 35.2%
• Operating cash flow positive $4.7M vs -$5.3M prior
• Cash reserves $110.5M (~$9.26 per share)
• China unit sales +14.5% YoY

Negative

• None.

Insights

Equity Analyst

Stronger margins and cash position drive a materially improved H1 2025 profit profile despite modest revenue growth.

Revenue rose modestly to $27.7 million while gross profit expanded to $9.8 million and gross margin widened to 35.2%, a 500% basis-point improvement year-over-year; net income increased to $4.8 million, up 45.5%, showing the company converted relatively flat top-line results into much stronger profitability.

Key dependencies and risks include continued control of input costs and successful ramp of the Chengdu facility; operating cash flow turned positive ($4.7 million), and cash reserves rose to $110.5 million (about $9.26 per share), which supports the stated expansion plans but ties near-term execution to the facility completion timeline.

Watch for the Chengdu facility completion by end of 2025 and mass production in Q2 2026, domestic unit demand trends (China sales growth and unit shipments at 1.38 million), and overseas revenue recovery as the concrete near-term milestones that will validate the earnings and margin improvements.

CHENGDU, CN / ACCESS Newswire / October 9, 2025 / WeTouch Technology Inc. (NASDAQ:WETH) ("WeTouch" or the "Company"), a global leader in touch display solutions, today announced its financial results for the first half of fiscal year 2025 ended June 30, 2025.

First Half Fiscal Year 2025 Financial Highlights

• Total Revenue: $27.7 million, an increase of 2.2% compared with $27.1 million in the first half of fiscal 2024.

• Gross Profit: $9.8 million, up 18.9% from $8.2 million in the same period of 2024.

• Gross Margin: Expanded to 35.2%, compared with 30.2%, representing an expansion of 500 basis points year-over-year.

• Net Income: $4.8 million, up 45.5% from $3.3 million in the first half of 2024.

• Basic Earnings Per Share (EPS):$0.40 vs. $0.27.

• Operating Cash Flow: Positive $4.7 million, compared with negative $5.3 million in the first half of 2024.

• Cash Reserves: $110.5 million as of June 30, 2025, compared with $98.4 million a year ago, equivalent to approximately $9.26 per share.

• Total Volume Shipped: 1.38 million units, an increase of 8.9% year-over-year.

• Shareholders' Equity: Reached $131.8 million as of June 30, 2025, compared with $122.5 million, an increase of 7.6% year-over-year.

Management Commentary

"We are pleased to see that WeTouch has maintained strong profitability through the first half of fiscal 2025," said Zongyi Lian, CEO of WeTouch Technology Inc. "Our gross margin reached 35.2%, returning to the same level as in 2023, as the Company successfully overcame external challenges such as raw material cost fluctuations and supply chain volatility. Operating cash flow also turned positive, underscoring the improvement in both profitability and operational efficiency. Domestic sales in China rose by 8.7% year-over-year and became the main driver of overall growth."

Mr. Lian continued, "During the second quarter, WeTouch secured new customers, launched multiple new projects, and made steady progress on the construction of its new Chengdu production facility. These initiatives have laid a solid foundation for sustainable growth in the coming quarters. With shareholders' equity now exceeding $130 million and cash reserves of $110.5 million, WeTouch remains financially strong and well-positioned to execute its strategic expansion plan. Despite this solid financial foundation, the Company's stock continues to trade significantly below its intrinsic value. The Chengdu facility is on schedule for completion by the end of 2025, with mass production expected to commence in the second quarter of 2026. WeTouch will continue to focus on creating long-term value through disciplined execution and sustained profitability, while management actively explores strategic opportunities to further strengthen competitiveness and enhance shareholder returns."

Market Expansion and Strategic Outlook

• China Market: Unit sales grew 14.5% year-over-year, with notable strength in East and South China.

• Overseas Market: Revenue declined 9.1% year-over-year, though customer structure in Europe and South Korea improved, laying groundwork for recovery.

• Strategic Priorities: Continued investment in curved and ultra-large-size touchscreen technologies; expansion into automotive electronics, professional gaming, and commercial display applications.

About WeTouch Technology Inc.

Wetouch Technology Inc. is at the forefront of providing premium touch display solutions, dedicated to reshaping human-machine interaction across diverse industries. With a relentless focus on innovation and customer satisfaction, Wetouch consistently delivers cutting-edge technology and unparalleled performance in touch display solutions globally.

For additional information, please visit: WeTouch Technology Inc. at http://en.usa-wetouch.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact:

Email: JBHUANG1975@163.com

SOURCE: Wetouch Technology Inc.

View the original press release on ACCESS Newswire

FAQ

What were WeTouch (WETH) first-half fiscal 2025 revenues and net income?

Total revenue was $27.7M and net income was $4.8M for H1 FY2025.

How did WeTouch's margins change in H1 FY2025 for WETH?

Gross margin expanded to 35.2%, a 500 basis-point improvement year-over-year.

What is WeTouch's cash position per share as of June 30, 2025 (WETH)?

Cash reserves were $110.5M, approximately $9.26 per share as of June 30, 2025.

Did WeTouch (WETH) generate positive operating cash flow in H1 FY2025?

Yes. Operating cash flow was positive $4.7M compared with - $5.3M in H1 FY2024.

How many units did WeTouch (WETH) ship in the first half of FY2025?

WeTouch shipped 1.38 million units in H1 FY2025, up 8.9% year-over-year.

When will WeTouch's Chengdu facility be completed and begin mass production (WETH)?

The Chengdu facility is on schedule for completion by the end of 2025, with mass production expected in Q2 2026.