Wise Ally International Holdings reported a sharp swing to a net loss of HK$54.58 million for the six months ended 30 June 2026, reversing a HK$14.34 million profit in the comparable 2025 period. The downturn followed a 33.7% slide in revenue to HK$311.70 million, driven by weaker customer demand amid prolonged geopolitical and macro-economic uncertainties.

Gross profit contracted 53.0% to HK$37.02 million, cutting gross margin by 4.9 percentage points to 11.9%. Management cited reduced order volumes and a surge in raw-material and component costs—exacerbated by global supply constraints linked to AI and electric-vehicle demand—as primary factors pressuring profitability. Operating performance deteriorated to a HK$53.00 million loss versus a HK$18.17 million profit a year earlier.

Geographically, the United States expanded its share of group sales to 64.2% (HK$200.24 million), up from 37.1% a year ago, while revenue from Chinese Mainland and the Philippines fell sharply to HK$24.50 million and HK$20.02 million respectively. Lithuania emerged as a new contributor with HK$19.70 million.

Wise Ally reduced bank borrowings by 38.0% to HK$61.15 million and trimmed trade receivables by 31.4% to HK$108.23 million, reflecting tighter working-capital management. Cash and cash equivalents stood at HK$195.05 million, supporting a net cash position of HK$133.90 million. Total equity declined to HK$135.70 million from HK$189.48 million at end-2025.

Operating expenses were broadly contained: selling, distribution and administrative costs fell 2.9% to HK$87.08 million, aided by lower staff expenses and management remuneration. Net finance costs dropped 60.9% to HK$0.86 million, as interest income marginally exceeded borrowing costs following debt reduction.

Capital expenditure reached HK$2.70 million, with outstanding capex commitments of HK$0.50 million. The interim dividend remains suspended.

Management reiterated plans to deepen cost controls, advance its “China Plus One” strategy via the Batam, Indonesia plant, and further deleverage, while warning that trade tensions, raw-material inflation, and geopolitical risks will continue to cloud revenue visibility and margin recovery in the second half of 2026.