WETH Wetouch Technology Inc.

Overview and Growth

Fiscal 2025 results for Wetouch Technology Inc. combined $45.14M of revenue with net income of $7.16M and an operating cash inflow of $7.39M. At $45.14M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 6.8% from $42.28M in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $0.60, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.52 in fiscal 2024, the current result was 15.4% higher. Asset turnover was 0.32x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $14.37M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 31.8% of revenue, showing how much of the top line remained after direct costs. Operating income was $9.97M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 22.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $7.16M for the fiscal year. The final earnings result represented 15.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $10.16M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 22.5% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $3.00M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 29.5%, quantifying the portion of pre-tax earnings paid in income tax. Return on period-end equity was 5.2%, relating annual net income to the equity capital on the balance sheet. Net income represented 5.1% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $140.64M, supported by $3.24M of liabilities and $137.39M of shareholder equity. The near-term balance sheet paired $126.10M of current assets with $3.24M of current liabilities at the reporting date. The current ratio was 38.88x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $118.36M in cash and equivalents, a narrower liquidity measure than total current assets. The liabilities-to-assets relationship was 2.3%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 84.2%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 9.9% higher than fiscal 2024 assets of $128.02M, measuring the company’s own balance-sheet change. Against $124.59M of equity in fiscal 2024, the current book-equity balance moved 10.3% and ended higher.

Cash Flow and Earnings Quality

Cash flow from operations was $7.39M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.03x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $322.30K, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 4.4% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $7.07M of positive free cash flow for the period. Free cash flow represented 15.7% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 5.0% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.