Wise Ally International Holdings Ltd (HKEX: 09918) has reported a net loss attributable to shareholders of HK$54.578 million for the six months ended June 30, 2026, a sharp reversal from the HK$14.338 million profit recorded in the same period last year.

Revenue for the period fell 33.66% year-on-year to HK$312 million, with the group attributing the decline to reduced customer orders and a higher cost of sales ratio. The company posted a loss per share of HK$0.5458.

The group's top-line and gross profit for the first half of 2026 both decreased compared to the same period in 2025, primarily due to weaker client demand. Persistent geopolitical tensions and an uncertain macroeconomic outlook have dampened consumer confidence across the group's key end markets, leading to a notable softening in orders.

At the same time, costs for raw materials and electronic components have risen significantly, driven by geopolitical frictions, oil price volatility, and robust global demand from the rapidly expanding artificial intelligence and electric vehicle sectors. These factors have intensified competition for critical materials, resulting in supply constraints and substantial price hikes from suppliers. Consequently, the group's production costs as a percentage of revenue have been pushed higher, putting direct pressure on its gross margin.