WeTouch Technology Inc. reported third‑quarter and year‑to‑date financial results for fiscal 2025, ending September 30. Total revenue for the nine‑month period rose 3.4% to $39.9 million, while net income increased 23.7% year‑over‑year to $7.3 million. Cash per share reached $9.48, reflecting a cash balance of $113.2 million that supports ongoing capital expenditures.
For the third quarter alone, revenue was $12.18 million, up 0.5% from $12.12 million in Q3 2024, and net income was $2.53 million, down 4.7% from $2.66 million a year earlier. Gross margin contracted to 32.7% from 38.4% in the prior year, a decline driven by higher raw‑material and labor costs that eroded the company’s high‑margin industrial touchscreen segment.
Domestic sales accounted for 68.9% of Q3 revenue, with China demand outpacing overseas markets. The company’s strong domestic performance offsets a 7.9% decline in overseas revenue, underscoring the resilience of its automotive, gaming, and industrial control segments in China.
Cash reserves of $113.2 million provide a buffer for the Chengdu manufacturing facility, which is on schedule for completion by the end of 2025 and is expected to begin mass production in Q2 2026. The company also announced a new five‑year partnership with Siemens AG, projected to generate approximately $10 million in annual revenue, validating WeTouch’s capabilities in high‑end industrial HMI and PLC markets.
CEO Zongyi Lian highlighted that “WeTouch continued to deliver resilient results and solid profitability through the first three quarters of fiscal 2025. Although third‑quarter gross margin was affected by raw‑material cost inflation, overall profitability and cash generation remained strong.” He added that the Chengdu facility construction is progressing smoothly and that the company’s debt‑free balance sheet positions it well for future expansion.
The results signal that while margin compression is a short‑term headwind, the company’s robust cash position, strong domestic demand, and strategic partnerships provide a solid foundation for continued growth. Management’s confidence in the Chengdu facility’s ramp‑up and the Siemens partnership suggests that WeTouch is poised to capture additional market share in high‑margin industrial segments, even as it navigates rising input costs.
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