Wise Ally International reported a sharp reversal to a HK$54.58 million net loss for the six months ended 30 June 2026, compared with a HK$14.34 million profit a year earlier, as weakened customer demand and higher input costs hit performance.

Revenue slid 33.7% year-on-year to HK$311.70 million, reflecting lower orders across more than 21 export markets. The United States remained the largest destination, contributing HK$200.24 million, or 64.2% of total sales. Gross profit dropped 53.0% to HK$37.02 million, and gross margin narrowed to 11.9% from 16.8% amid rising raw-material and component prices and a less favourable sales mix.

Operating loss reached HK$53.00 million versus a HK$18.17 million profit in the prior-year period. Selling, distribution and administrative expenses were trimmed by 2.9% to HK$87.08 million, helped by lower staff costs. Net finance costs fell 60.9% to HK$0.86 million following a 38.0% reduction in bank borrowings to HK$61.15 million at end-June. Interest income on deposits offset interest expenses in the period.

Liquidity remained solid with cash and cash equivalents of HK$195.05 million and no term deposits outstanding. Net cash stood at HK$133.90 million, down from HK$165.90 million at end-2025. Total equity declined to HK$135.70 million from HK$189.48 million, reflecting the interim loss.

Capital expenditure totalled HK$2.70 million, primarily for plant, machinery and software, while outstanding capital commitments were HK$0.48 million. No interim dividend was declared.

Management cited ongoing geopolitical tensions, elevated materials costs and subdued consumer sentiment as key challenges. Strategic responses include continued cost controls, tighter working-capital management, consolidation of manufacturing facilities and acceleration of the “China Plus One” strategy, highlighted by the ramp-up of production in Batam, Indonesia.

Board changes during the period saw the retirement of independent non-executive director (INED) Ms Elizabeth Law on 1 June 2026. Ms Emmy Lo joined as INED and chair of the audit committee the same day, while Mr Andrew Wei was appointed as an executive director.

The audit committee has reviewed the interim results, and the board confirmed compliance with Hong Kong’s Corporate Governance Code except for the combined roles of chairman and CEO held by Mr Raymond Chu.