What changed in Wetouch Technology Inc.'s 10-K — 2024 vs 2025

AND ITS SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm F-2 Consolidated Balance Sheets as of December 31, 2025 and 2024 F-3 Consolidated Statements of Income and Comprehensive Income for the Years Ended December 31, 2025 and 2024 F-4 Consolidated Statements of Changes in Stockholders’ Equity for the years Ended December 31,2025 and 2024 F-5 Consolidated Statements of Cash Flows for the years Ended December 31,2025 and 2024 F-6 Notes to Consolidated Financial Statements F-7 - F-31 F-1 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Wetouch Technology Inc.

Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Wetouch Technology Inc. and its subsidiaries (collectively, the”Company”) as of December 31, 2025 and the related consolidated statements of operation and comprehensive loss, consolidated statements of changes in shareholders ‘equity, and consolidated statements of cash flows for the years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters. /S/ ST & Partners PLT Malaysia April 13, 2026 We have served as the Company’s auditor since 2025 PCAOB ID Number 7261 F-2 WETOUCH TECHNOLOGY INC.

AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Currency expressed in United States Dollars(“US”), except for number of shares) December 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash $ 118,363,448 $ 103,760,324 Accounts receivable, net 6,505,038 7,504,630 Inventories 45,202 112,327 Prepaid expenses and other current assets 1,189,616 2,762,580 TOTAL CURRENT ASSETS 126,103,304 114,139,861 Property, plant and equipment, net 8,885,976 12,782,997 Land use right, net 544,118 Operating right-of-use assets 521,454 1,055,208 Deferred tax assets 71,223 41,397 Long-term prepayment 4,510,973 - TOTAL ASSETS $ 140,637,048 $ 128,019,463 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 1,063,759 $ 1,263,981 Due to a related party 286,311 149,211 Accrued expenses and other current liabilities 1,372,047 966,461 Operating lease liabilities- current 521,454 571,539 TOTAL CURRENT LIABILITIES 3,243,571 2,951,192 Operating lease liabilities- non current - 482,606 TOTAL LIABILITIES $ 3,243,571 $ 3,433,798 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 15,000,000 shares authorized, 11,931,534 and 11,931,534 issued and outstanding as of December 31, 2025 and 2024, respectively* $ 11,932 $ 11,932 Additional paid in capital* 52,501,680 52,501,680 Statutory reserve 8,073,968 8,073,968 Retained earnings 81,789,884 74,629,374 Accumulated other comprehensive loss -4,983,987 ) (10,631,289 ) TOTAL STOCKHOLDERS’ EQUITY 137,393,477 124,585,665 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 140,637,048 $ 128,019,463 * Retrospectively restated for effect of reverse stock split (1-for-20), see Note 12 (2) The accompanying notes are an integral part of these consolidated financial statements.

AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Currency expressed in United States Dollars(“US”), except for number of shares) The Years Ended December 31, 2025 2024 REVENUES $ 45,136,818 $ 42,280,373 COST OF REVENUES (30,766,304 ) (28,673,574 ) GROSS PROFIT 14,370,514 13,606,799 OPERATING EXPENSES Selling expenses (569,240 ) (752,795 ) General and administrative expenses (3,834,947 ) (3,536,597 ) OPERATING EXPENSES (4,404,187 ) (4,289,392 ) INCOME FROM OPERATIONS 9,966,327 9,317,407 Interest income 156,627 152,336 Interest expense - (1,169,974 ) Other income 35,906 10,708 Gain (loss)on changes in fair value of common stock purchase warrants liability - 378,371 TOTAL OTHER INCOME (EXPENSE), NET 192,533 (628,559 ) INCOME BEFORE INCOME TAX EXPENSES 10,158,860 8,688,848 INCOME TAX EXPENSES (2,998,350 ) (2,657,690 ) NET INCOME $ 7,160,510 $ 6,031,158 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 5,647,302 (3,355,857 ) COMPREHENSIVE INCOME $ 12,807,812 $ 2,675,301 EARNINGS PER COMMON SHARE* Basic $ 0.60 $ 0.52 Diluted $ 0.60 $ 0.52 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING* Basic 11,931,534 11,630,358 Diluted 11,931,534 11,681,063 * Retrospectively restated for effect of reverse stock split (1-for-20), see Note 12 (2) The accompanying notes are an integral part of these consolidated financial statements.

AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Currency expressed in United States Dollars(“US”), except for number of shares) Common stock at Par value $0.001 Additional paid-in Statutory Retained Accumulated other comprehensive Total stockholders’ Shares Amount capital reserve Earnings loss equity Balance as of December 31 2023* 9,732,948 $ 9,733 $ 43,514,125 $ 7,195,092 $ 69,477,092 $ (7,275,432 ) $ 112,920,610 Issuance of common stock from the 2024 Public Offering, net of issuance costs 2,160,000 2,160 8,987,594 - - - 8,989,754 Exercise of warrants issued in conjunction with legal/consultant services in 2020 and 2021 35,861 36 (36 ) - - - - Exercise of warrants issued to third parties in conjunction with debt issuance in 2021 2,725 3 (3 ) - - - - Appropriation to statutory reserve 878,876 (878,876 ) Net income - - - - 6,031,158 - 6,031,158 Foreign currency translation adjustment - - - - - (3,355,857 ) (3,355,857 ) Balance as of December 31, 2024 11,931,534 $ 11,932 $ 52,501,680 $ 8,073,968 $ 74,629,374 $ (10,631,289 ) $ 124,585,665 Net income - - - - 7,160,510 - 7,160,510 Foreign currency translation adjustment - - - - - 5,647,302 5,647,302 Balance as of December 31, 2025 11,931,534 $ 11,932 $ 52,501,680 $ 8,073,968 $ 81,789,884 $ (4,983,987 ) $ 137,393,477 * Retrospectively restated for effect of reverse stock split (1-for-20), see Note 12 (2) The accompanying notes are an integral part of these consolidated financial statements.

AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Currency expressed in United States Dollars(“US”),except for number of shares) For the Years Ended December 31, 2025 2024 Cash flows from operating activities Net income $ 7,160,510 $ 6,031,158 Adjustments to reconcile net income to cash provided by operating activities (Reversal of) allowance for credit losses (30,516 ) 44,862 (Reversal of) provision for obsolete inventory (36,971 ) 54,873 Depreciation and amortization 22,374 9,805 Impairment loss on construction in progress 175,426 - Amortization of discounts and issuance cost of the notes - 5,715 (Gain) on changes in fair value of common stock purchase warrants liability - (378,371 ) Amortization of operating Right-of-use assets 601,157 98,387 Changes in operating assets and liabilities: Accounts receivable 1,291,782 (256,681 ) Inventories 107,066 50,328 Prepaid expenses and other current assets 1,622,597 (1,771,602 ) Deferred tax assets (27,256 ) (41,993 ) Long-term investment (4,388,965 ) - Accounts payable (248,654 ) 649,915 Loans from a third party - (135,000 ) Due to related parties 137,100 149,211 Accrued expenses and other current liabilities 393,236 (3,343,142 ) Operating lease liabilities 612,684 (98,387 ) Net cash provided by operating activities 7,391,570 1,069,078 Cash flows from investing activities Purchase of property, plant and equipment (322,304 ) (271,830 ) Net cash used in investing activities (322,304 ) (271,830 ) Cash flows from financing activities Proceeds from issuance of public offerings, net of expenses - 8,989,754 Repayments of convertible promissory notes payable - (1,400,750 ) Net cash provided by financing activities - 7,589,004 Effect of changes of foreign exchange rates on cash 7,533,858 (2,666,482 ) Net increase in cash 14,603,124 5,719,770 Cash, beginning of year 103,760,324 98,040,554 Cash, end of year $ 118,363,448 $ 103,760,324 Supplemental disclosures of cash flow information Interest paid $ - $ 1,186,210 Income taxes paid $ 3,026,273 $ 2,890,222 Supplemental disclosures of non-cash flow information Issue costs charged to additional paid-in capital $ - $ 1,810,246 Exercise of warrant shares $ - $ 38,586 Lease liabilities arising from obtaining right-of-use assets $ 11,526 1,992 The accompanying notes are an integral part of these consolidated financial statements.

F-6 WETOUCH TECHNOLOGY INC. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — BUSINESS DESCRIPTION Wetouch Technology Inc. (“Wetouch”, or the “Company”), formerly known as Gulf West Investment Properties, Inc., was originally incorporated in August 1992, under the laws of the state of Nevada.

In the Reverse Merger, each ordinary share of BVI Wetouch was exchanged for 2,800 shares (140 shares post-Reverse Stock Split) of common stock of Wetouch. Immediately after the closing of the Reverse Merger on October 9, 2020, the Company had a total of 31,396,394 (1,569,820 shares post-Reverse Stock Split) issued and outstanding shares of common stock.

As a result of the Reverse Merger, BVI Wetouch became a wholly-owned subsidiary of the Company. BVI Wetouch is a holding company whose only asset, held through a subsidiary, is 100% of the registered capital of Sichuan Wetouch Technology Co., Ltd.

(“Sichuan Wetouch”), a limited liability company organized under the laws of the People’s Republic of China (“China” or the “PRC”). Sichuan Wetouch is primarily engaged in the business of research and development, manufacture, and distribution of touchscreen displays to customers both in the PRC and overseas.

The touchscreen products, which are manufactured by the Company, are primarily for use in financial terminals, automotive, Point of Sales, gaming, lottery, medical, Human-Machine Interface (HMI), and other specialized industries. The Reverse Merger was accounted for as a recapitalization effected by a share exchange, wherein BVI Wetouch is considered the acquirer for accounting and financial reporting purposes.

The assets and liabilities of BVI Wetouch have been brought forward at their book value and no goodwill has been recognized. The number of shares, par value amount, and additional paid-in capital in the prior years are retrospectively adjusted accordingly. Corporate History of BVI Wetouch BVI Wetouch was incorporated under the laws of British Virgin Islands on August 14, 2020.

Due to the fact that Hong Kong Wetouch and HK Wetouch are both under the same sole stockholder, the acquisition is accounted for under common control. In June 2021, Hong Kong Wetouch completed its dissolution process pursuant to the minutes of its special stockholder meeting.

Sichuan Wetouch was formed on May 6, 2011 in the PRC and became a Wholly Foreign-Owned Enterprise (“WFOE”) in PRC on February 23, 2017. On July 19, 2016, Sichuan Wetouch was 100% held by HK Wetouch. On December 30, 2020, Sichuan Vtouch was incorporated in Chengdu, Sichuan, under the PRC laws.

As a result of the above restructuring, HK Wetouch became the sole stockholder of Sichuan Vtouch.

The following diagram illustrates the Company’s current corporate structure: F-8 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements include the financial statements of Wetouch and its wholly owned subsidiaries.

All significant intercompany transactions and balances have been eliminated upon consolidation (b) Uses of estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

These estimates are based on information as of the date of the consolidated financial statements.

Significant estimates required to be made by management include, but are not limited to, the allowance for estimated uncollectible receivables, fair values of financial instruments, inventory valuations, useful lives of property, plant and equipment, intangible assets, operating lease, the recoverability of long-lived assets, provision necessary for contingent liabilities, revenue recognition and realization of deferred tax assets.

Actual results could differ from those estimates. (c) Cash and cash equivalents Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. (d) Accounts receivables, net Accounts receivable primarily consists of receivables from customers, which are recognized and carried at the original invoice amount less an allowance for credit losses.

The Company adopted ASC 326, Financial Instruments — Credit Loss to estimate the allowance of credit losses for accounts receivable based upon the current expected credit losses (“CECL”) model.

The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL.

In assessing the CECL, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions.

While the Company uses the best information available in making determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond the Company’s control.