WeTouch Technology has entered a strategic cooperation agreement with Canop Robotics to develop industrial touch interaction modules and intelligent manufacturing solutions. The partnership marks a shift in WeTouch’s business model, extending its capabilities from standalone touch display modules to integrated robotics control systems and whole-product development.

The collaboration focuses on integrating WeTouch’s 8-inch industrial touch display modules with Canop Robotics’ control systems. This technical adaptation enables interaction terminals for parameter setting, operating status monitoring, fault alerts, and on-site operations within industrial automation scenarios.

Financial Impact

The financial implications of the partnership are structured around current execution and projected annual contributions. To date, the company has achieved approximately $1.47 million (approximately RMB10.0 million) in contract execution and product supply. Based on current progress and internal estimates, the cooperation is expected to generate approximately $2.94 million (approximately RMB20.0 million) in annual incremental revenue.

Actual procurement amounts, delivery schedules, and revenue recognition remain subject to subsequent product validation, specific orders, and changes in customer demand.

What the Numbers Show

The relationship between executed contracts and projected revenue highlights the early-stage nature of this venture. With $1.47 million already executed against a $2.94 million annual target, nearly half of the projected yearly contribution has been realized in initial contract execution. This suggests that while the commercial framework is active, the full realization of the annual revenue estimate depends heavily on the scaling of specific orders and project implementation progress rather than immediate volume saturation.

Strategic Expansion

Canop Robotics, founded in 2012, is recognized as a national high-tech enterprise and a specialized "Little Giant" enterprise. It engages in the research, development, manufacturing, and sales of core components and whole products for intelligent industrial robots.

WeTouch views this cooperation as a concrete step toward transitioning from professional solutions to intelligent hardware whole-product development. The parties plan to leverage their respective resources in supply chain, product development, and customer service to explore opportunities in new energy, precision equipment, and high-end manufacturing sectors. Potential applications include flexible automation production lines, equipment status monitoring, and production data connectivity.

The company cites growing adoption of AI-powered smart hardware as a driver for this expansion. Publicly available industry research projects the global consumer robotics market to grow from approximately $10.92 billion in 2024 to approximately $40.15 billion by 2030. WeTouch intends to build a business foundation for future expansion into intelligent terminals and automation system integration based on market demand.

WeTouch Technology Inc. (NASDAQ: WETH) secured $38,797,287.50 in gross proceeds on July 31, 2026, through a private placement of 31,037,830 common shares at $1.25 per share, funded entirely by its controlling shareholder platforms. The transaction, expected to close on or about August 4, 2026, represents a primary equity issuance where all cash proceeds flow directly to the company to support core business expansion and product upgrades, rather than serving as an exit for insiders. The purchase price reflects a premium to the applicable Nasdaq Minimum Price, signaling strong confidence from the founder, directors, and management team in the company’s long-term strategic potential.

The purchasers, Qixun Technology Limited and Qihong Technology Limited, are investment holding platforms controlled by WeTouch’s leadership team. Under the agreement, these entities have agreed to a contractual 12-month lock-up period, prohibiting the sale or transfer of the acquired shares without prior written consent from the company. Additionally, the purchasers have committed to refraining from short-selling or share-lending activities involving WeTouch’s securities. This structure ensures that the capital injection strengthens the company’s balance sheet without creating immediate dilution pressure from secondary market sales.

Strategic Deployment of Capital

Management retains discretion over the deployment of the raised funds, which are earmarked for several key growth initiatives. The capital will support the company’s transformation from a manufacturer of professional touch display products into a provider of integrated touch solutions and intelligent terminal systems. Specific areas of investment include:

• Core business expansion and product upgrades in touch display solutions.
• Research and development for complete-system design and commercialization.
• Expansion into intelligent interactive terminals, human-machine interaction systems, and robotics components.
• Potential strategic acquisitions or business integrations that add manufacturing capabilities or complementary product portfolios.

CEO Jack Zongyi Lian emphasized that the transaction underscores the leadership’s commitment to long-term value creation. "At a time when we believe our public market valuation does not fully reflect the Company’s underlying operating strengths... our founder, directors and management team chose to commit additional cash capital... at a premium price," Lian stated. He clarified that this is not a sale of existing shares but a direct investment to support the next stage of development, including improving operating efficiency and expanding into robotics.

Transaction Details

The shares were offered in reliance on exemptions from registration under the Securities Act of 1933, including Section 4(a)(2) and Rule 506 of Regulation D. Upon closing, the issuance will increase the number of outstanding common shares, diluting the percentage ownership of existing shareholders while consolidating the long-term ownership position of the founder and management team through their controlling platforms.