Zongyi Lian
About Zongyi Lian
Zongyi Lian, age 60, is President and Chief Executive Officer of Wetouch Technology Inc. (WETH) since October 12, 2020; he previously served as CEO of Sichuan Wetouch from November 21, 2017 and holds a master’s degree in Automatic Control from National Yang Ming Chiao Tung University (1982) . Under his tenure, company revenues increased from $39.7 million in 2023 to $42.3 million in 2024, while net losses narrowed from $8,264,331 to $6,031,158; the company’s “Pay vs Performance” disclosure shows the value of an initial $100 TSR measurement at $(4) for 2023 and $(67) for 2024 based on available trading history commencing September 12, 2023 . Management communications highlight strong liquidity and capital allocation signals: a CEO letter reported $94.8 million cash as of the latest balance sheet, and the company announced a $15 million buyback program while emphasizing perceived undervaluation (cash “over $90 million” and “nearly $8 per share in cash”) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Chongqing Damai Touchscreen Computer Co., Ltd. (later Chengdu Wetouch) | Co-founder; Vice Technique General Manager | 2006–2011 | Oversaw product technology department; scaled medium-to-large format projected capacitive touchscreens |
| Sichuan Wetouch Technology Co., Ltd. | Co-founder; Vice Technique General Manager | 2011–2017 | Advanced product design/manufacturing in industrial HMI, financial terminals, POS, gaming, medical, automotive |
| Sichuan Wetouch (assigned to Sichuan Vtouch) | Chief Executive Officer | 2017–present | Led operations and strategic direction of PRC operating subsidiary |
Fixed Compensation
Employment agreement components and status:
| Component | Amount (USD) | Terms | Status/Date |
|---|---|---|---|
| Annual base salary | $23,890 | Part of fixed cash compensation (PRC employment agreement) | Original 11/21/2017; renewed 11/13/2020; extended 4/16/2024 for 3 years from 11/21/2023 |
| Position salary | $17,070 | Additional fixed remuneration | Same terms as above |
| Confidentiality fee | $6,828 | Monthly confidentiality fee as part of agreement | Same terms; confidentiality obligations continue post-termination |
| Subsidies | $9,104 | Additional allowances/subsidies | Same terms |
| Agreement term | 3 years (renewable) | Renewed in 2020; extended by Board 4/16/2024 for 3 years from 11/21/2023 | New agreement to memorialize terms expected to be filed upon execution |
Summary compensation actually paid:
| Year | Salary ($) | Bonus ($) | Stock awards ($) | Option awards ($) | All other comp ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2023 | $20,336 | $0 | $0 | $0 | $0 | $20,336 |
| 2024 | $12,857 | $0 | $0 | $0 | $0 | $12,857 |
Notes:
- Company states executive compensation program comprises salary, equity and performance-based cash compensation, but there were no equity or incentive payouts disclosed for Lian in 2023–2024 .
Performance Compensation
| Fiscal Year | Incentive-based compensation received? | Notes |
|---|---|---|
| 2023 | None disclosed | Summary Compensation Table shows no bonus, stock awards, or options for Lian |
| 2024 | None disclosed | Clawback policy applies to incentive-based pay only if granted and a restatement occurs; company notes no incentive-based compensation during 2024 |
Clawback policy scope: 3 prior fiscal years; applies to incentive-based compensation received while Nasdaq-listed and on/after October 2, 2023; triggered by accounting restatements due to material noncompliance .
Equity Ownership & Alignment
| As-of date | Shares beneficially owned | % of outstanding | Shares outstanding | Notes |
|---|---|---|---|---|
| September 8, 2025 | 5,657 | <1% | 11,931,534 | Held of record by Zongyi Lian (CEO); directors and officers as a group held 15,233 shares (<1%) |
Additional equity details:
- Outstanding equity awards: None for named executive officers as of December 31, 2024 .
- Equity compensation plans: Company states it does not have any equity compensation plans .
Employment Terms
| Topic | Provision | Details |
|---|---|---|
| Non-compete duration | During employment and 2 years post-termination | Prohibits direct/indirect investment, employment, or operations in same/similar competitive businesses; prohibits solicitation of company employees and customers |
| Confidentiality | Ongoing duties; return of materials | Maintain confidentiality; return copies upon termination; no disclosure/use for personal benefit; monthly confidentiality fee compensates obligations |
| Penalties for breach | RMB 50,000–100,000 | Monetary penalty of $7,110–$14,220 plus disgorgement of any earnings from misuse/disclosure |
| Termination (company) | For cause without notice/remuneration; with notice in specified cases | Immediate for serious violations/gross neglect with economic loss; 30-day notice and one month’s salary in cases of illness/inability after training/reassignment; other termination events per PRC law |
| Termination (executive) | 30-day notice | Executive may terminate employment with 30 days’ advance written notice |
| Extension | Board extension | 4/16/2024 Board ratified extension for 3 years from 11/21/2023; new agreement to be filed when executed |
Company Performance (context for pay-for-performance)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenue ($USD Millions) | $39.7 | $42.3 |
| Net loss ($USD) | $8,264,331 | $6,031,158 |
| Value of initial fixed $100 TSR | $(4) | $(67) |
Liquidity and capital signals:
- CEO letter: cash reserve $94.8 million (as of latest balance sheet, per management) .
- Buyback: authorized up to $15 million; management cites “over $90 million in cash” and “nearly $8 per share in cash,” asserting significant undervaluation .
Investment Implications
- Pay-for-performance alignment: Lian’s compensation is predominantly fixed cash with low absolute salary and no equity or bonus in 2023–2024, limiting direct upside alignment but also minimizing dilution and near-term insider selling pressure; the company has no equity plans and no outstanding executive equity awards .
- Ownership and alignment: Lian’s direct beneficial ownership is 5,657 shares (<1%), indicating modest personal exposure relative to 11,931,534 shares outstanding; lack of disclosed pledging and absence of equity grants reduces forced-selling risk but limits alignment via equity .
- Retention risk: Binding non-compete (two years) and confidentiality penalties create retention and post-exit competitive barriers; however, the company discloses dependence on key executives as a risk, highlighting the importance of continuity in leadership and technical expertise .
- Trading signals: Management’s $15 million buyback authorization and stated cash of ~$95 million suggest confidence and potential support for the share price amid perceived undervaluation, balanced against ongoing losses and Nasdaq compliance/bid-price notice disclosures in 2025 .
Overall, the profile reflects a cash-heavy compensation framework with minimal equity incentives, strong restrictive covenants, modest personal shareholding, and corporate actions (buyback, liquidity) that could impact sentiment and trading dynamics in the near term .