First Quarter Fiscal Year 2024 Revenue Reaches
$14.9 Million, Marking an 11.2%
Increase from 1Q 2023
CHENGDU,
China, June 17, 2024 /PRNewswire/ -- WeTouch
Technology Inc., (NASDAQ: WETH) ("WeTouch" or the "Company"), a
leading innovator in the global touch display industry, today
announced its financial results for the first quarter ended
March 31, 2024.
"We achieved higher revenue in the first quarter
of fiscal 2024 by aggressively promoting our high-end products.
Although our cost of goods sold increased due to the export
controls imposed by the U.S. Department of Commerce on advanced
computing and semiconductor manufacturing to China, we expect the procurement costs of
chips and other raw materials to stabilize after the second quarter
of 2024 as our suppliers increase production volumes. We believe
that the market demand for products with better materials and
quality remains strong both in China and overseas, creating many exciting
opportunities for WeTouch's long-term growth," concluded WeTouch
Technology's CEO, Zongyi Lian.
First Half Fiscal Year 2024
Financial Highlights
- Cash Reserves: The company's cash reserves
remain high at $94.8 million this
quarter.
- Total Revenue: Increased 11.2% to $14.9 million compared to $13.4 million for the first quarter of fiscal
2023. This growth is primarily related to an increase in sales
volume in both China and
international markets and higher average selling prices for new
higher-end products.
- Overseas Market Revenue: Reached $5.5 million, an increase of $1.4 million, or 34.1%. This was driven by a
12.9% increase in sales volume and an 18.1% increase in average
selling price for industrial control computer touchscreens,
automotive touchscreens, and gaming touchscreens.
- Total Volume Shipped: Increased 7.3% to 681,370
units from 635,276 units in the first quarter of 2023.
- Net Income: Decreased to $0.6 million, or $0.04 per diluted share, compared to $2.8 million, or $0.35 per diluted share, for the first quarter of
fiscal 2023. The decrease is attributed to a temporary increase in
sales costs and a higher number of shares outstanding.
- Gross Margin: Decreased 45.0% to $3.3 million, or 22.4% of sales, compared to
$6.0 million, or 45.0% of sales, in
the same quarter last year. The decline is due to a seasonal
short-term increased labor and material costs.
- Operating Expenses: Decreased 41.1% to
$1.0 million, or 6.9% of sales,
compared to $1.7 million, or 12.9% of
sales, for the same quarter last year, largely due to reduced
professional fees.
- Shareholders' Equity: Increased to $120.5 million from $112.9
million as of December 31,
2023.There were approximately 11,931,534 and 9,732,948 common
shares outstanding at March 31, 2024
and December 31, 2023,
respectively.
About WeTouch Technology Inc.
Wetouch Technology Inc. is at the forefront of
providing premium touch display solutions, dedicated to reshaping
human-machine interaction across diverse industries. With a
relentless focus on innovation and customer satisfaction, Wetouch
consistently delivers cutting-edge technology and unparalleled
performance in touch display solutions globally.
For additional information, please visit: WeTouch
Technology Inc.at http://en.usa-wetouch.com/
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will", "expects",
"anticipates", "future", "intends", "plans", "believes",
"estimates", "target", "going forward", "outlook," "objective" and
similar terms. Such statements are based upon management's current
expectations and current market and operating conditions, and
relate to events that involve known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and which
are beyond Datasea's control, which may cause Datasea's actual
results, performance or achievements (including the RMB/USD
value of its anticipated benefit to Datasea as described herein) to
differ materially and in an adverse manner from anticipated results
contained or implied in the forward-looking statements. Further
information regarding these and other risks, uncertainties or
factors is included in Datasea's filings with the U.S. Securities
and Exchange Commission, which are available at www.sec.gov.
Datasea does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under law.
Investor and Media Contact:
Horizon Research Management
Consultancy
Michael Wei,
Email: hwey@horizonconsultancy.co
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SOURCE Wetouch Technology Inc.