Wetouch Technology Inc. Segments Disclosure
NOTE 17 — SEGMENT REPORTING
The Company’s chief operating decision maker has been identified as the (“CEO”), who reviews financial information of operating segments based on U.S. GAAP amounts when making decisions about allocating resources and assessing performance of the Company.
The Company determined that it operated in one operating segment of touch screen business.
The Company primarily operates in People’s Republic of China (“PRC”). and substantially all of the Company’s long-lived assets are located in the PRC.
| 1) | The Company’s geographical revenue information is set forth below: |
For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Sales in PRC | $ | 30,934,806 | $ | 27,340,555 | ||||
| Sales in Overseas | ||||||||
| -Republic of China (ROC, or Taiwan) | 8,134,636 | 8,317,810 | ||||||
| -South Korea | 6,032,544 | 6,462,723 | ||||||
| -Others | 34,832 | 159,285 | ||||||
| Sub-total | 14,202,012 | 14,939,818 | ||||||
| Total revenues | $ | 45,136,818 | $ | 42,280,373 | ||||
| 2) | Segment information is set forth below: |
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 45,136,818 | $ | 42,280,373 | ||||
| Less: | ||||||||
| Cost of revenues | 30,766,304 | 28,673,574 | ||||||
| Allowance for credit losses | (30,516 | ) | 44,862 | |||||
| Provision of obsolete inventory | (36,971 | ) | 54,873 | |||||
| Impairment of construction in progress | 175,426 | |||||||
| Staff cost | 1,433,106 | 1,379,476 | ||||||
| (Gain) on changes in fair value of common stock purchase warrants liability. | (378,371 | ) | ||||||
| Amortization of discounts and issue cost of the notes | 5,715 | |||||||
| Depreciation expense | 22,374 | 9,805 | ||||||
| Lease expense | 612,684 | 98,387 | ||||||
| Interest expense | 1,169,974 | |||||||
| Income tax expense | 2,998,350 | 2,657,690 | ||||||
| Other segment items* | 2,035,551 | 2,533,230 | ||||||
| Segment net income | 7,160,510 | 6,031,158 | ||||||
| Consolidated net income | $ | 7,160,510 | $ | 6,031,158 | ||||
| Consolidated total assets | $ | 140,637,048 | $ | 128,019,463 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 13, 2026 | Showing above |
| 2024 | Sep 11, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.