Revenue and Sales Performance - For the three months ended September 30, 2025, revenues were $12.2 million, an increase of 6.1% from $11.5 million in the same period of 2024[140] - Domestic sales accounted for approximately 68.9% of total revenues for the three months ended September 30, 2025, compared to 64.3% in the same period of 2024[134] - Revenue from sales to customers in Mainland China was $8.4 million, an increase of 13.5% compared to $7.4 million in the same period of 2024[143] - Revenue from overseas markets decreased to $3.8 million, a decline of 7.3% from $4.1 million in the same period of 2024[146] - Total revenue for the nine months ended September 30, 2025, was $39.9 million, an increase of $1.3 million or 3.4% compared to $38.6 million in the same period of 2024[156] - Revenue from sales to customers in the PRC increased by $2.4 million or 9.7% for the nine months ended September 30, 2025[158] Profitability - Gross profit for the same period was $4.0 million, a decrease of 9.1% from $4.4 million in the third quarter of 2024, resulting in a gross profit margin of 32.7% compared to 38.4%[140] - Net income for the three months ended September 30, 2025, was $2.5 million, a decrease of 7.4% from $2.7 million in the same period of 2024[140] - Gross profit for the nine months ended September 30, 2025, was $13.7 million, up from $12.6 million in the same period of 2024, an increase of 8.7%[163] - Net income for the nine months ended September 30, 2025, was $7.3 million, an increase from $5.9 million in the same period of 2024[171] Expenses - Selling expenses for Q3 2025 were $0.1 million, a decrease of 50.0% from $0.2 million in Q3 2024, attributed to reduced travel expenses[149] - General and administrative expenses increased to $0.8 million in Q3 2025 from $0.7 million in Q3 2024, a rise of 14.3% due to higher professional fees[150] - Research and development expenses were nil in Q3 2025, down from $43,859 in Q3 2024, marking a 100.0% decrease[151] - Selling expenses for the nine months ended September 30, 2025, were $0.4 million, a decrease of 55.6% from $0.9 million in the same period of 2024[164] - General and administrative expenses increased to $3.1 million for the nine months ended September 30, 2025, up from $2.2 million in 2024, representing a 40.9% increase[165] - Research and development expenses were nil for the nine months ended September 30, 2025, compared to $129,808 in the same period of 2024, a decrease of 100%[166] Cash Flow and Assets - As of September 30, 2025, the company had approximately $113.2 million in cash on hand to fund the new facility construction[137] - Cash and cash equivalents increased to $113.2 million as of September 30, 2025, compared to $103.8 million at December 31, 2024[180] - Net cash provided by operating activities was $8.5 million for the nine months ended September 30, 2025, compared to a negative cash flow of $0.7 million in 2024[175] - Current assets as of September 30, 2025, totaled $125.2 million, while current liabilities were $4.7 million[174] Production and Future Plans - The total volume shipped was 597,470 units, an increase of 9.0% from 548,335 units in the third quarter of 2024[140] - The company plans to complete the construction of a new production facility by the end of 2025 and commence production in the second quarter of 2026[137] - The company has shifted its production mix towards high-end products, such as medical and automotive touchscreens, to meet stronger demand[147] Taxation - The effective income tax rate decreased to 28.9% for the nine months ended September 30, 2025, from 31.6% in 2024[170] Capital Expenditure - As of September 30, 2025, the company had a capital expenditure commitment of RMB4.6 million (approximately $0.7 million) for construction in progress[186]
Wetouch(WETH) - 2025 Q3 - Quarterly Report