Financial Performance - Revenues for the year ended December 31, 2023, were $39.7 million, an increase of 4.7% from $37.9 million in 2022[433] - Gross profit was $17.2 million, reflecting a 22.8% increase from $14.0 million in the previous year[443] - Net income decreased to $8.3 million, down 4.6% from $8.7 million for the year ended December 31, 2022[443] - Total revenues for the year ended December 31, 2023, increased to $39,705,939, representing a 4.7% growth from $37,923,112 in 2022[445] Sales and Market Performance - Total volume shipped was 1,967,316 units, an increase of 2.6% from 1,916,976 units in 2022[433] - Revenue from the PRC domestic market increased by $1.2 million or 4.6%, driven by a 2.7% increase in sales volume and a 6.8% rise in average sales price[435] - Revenue from sales to customers in the PRC was $27,646,722, accounting for 69.6% of total revenues, with a 4.6% increase from $26,440,376 in 2022[445] - Revenue from overseas customers reached $12,059,217, which is 30.4% of total revenues, marking a 5.0% increase from $11,482,736 in 2022[445] - Total units sold in 2023 were 1,967,316, a 2.6% increase from 1,916,976 units sold in 2022[445] - Units sold to customers in the PRC were 1,330,013, maintaining a 67.6% share of total units sold, with a 2.7% increase from 1,295,097 units in 2022[445] - Units sold to overseas customers totaled 637,303, representing 32.4% of total units sold, with a 2.5% increase from 621,879 units in 2022[445] - The increase in sales price in RMB was 6.8%, driven by marketing initiatives for higher-end products in Southwest and East China[447] Profitability and Margins - The gross profit margin improved to 43.3%, compared to 37.0% for the year ended December 31, 2022[433] Exchange Rate Impact - The company experienced a 5.2% negative impact from exchange rate fluctuations due to the depreciation of RMB against US dollars[444] Corporate Actions and Future Outlook - A reverse stock split at a ratio of 1-for-20 was approved and took effect on September 12, 2023[429] - The company does not anticipate declaring or paying cash dividends in the foreseeable future, focusing instead on business development and expansion[424] - The aggregate market value of the common stock held by non-affiliates as of June 30, 2023, was $77 million[450] - The company is classified as an emerging growth company, indicating potential for future growth and investment opportunities[450] Legal and Operational Risks - Legal cases involving various amounts, including a debt payable of RMB 1,656,480 (approximately $233,310), are ongoing and may impact financial results[420][421] - The company faces risks related to reliance on key executives and potential disruptions from third-party suppliers, which could impact operations and financial performance[463][464]
Wetouch(WETH) - 2023 Q4 - Annual Report