"Profit Warning" WISE ALLY INTL expects mid-term net profit to drop to at least 12 million yuan

WISE ALLY INTL (09918.HK) issued a profit warning, expecting a net profit of no less than HKD 12 million for the six months ending June this year, compared to a net profit of approximately HKD 15.7 million for the same period last year.

The group anticipates a decrease in net profit, primarily due to a one-time gain of approximately HKD 23.2 million from the fair value changes of financial assets measured at fair value through profit or loss during the period, which is attributed to the company fully receiving the outstanding principal and accrued interest of the convertible bonds issued by its investment, Talentone Technology Limited.

Additionally, the group's revenue is under pressure due to a decrease in customer orders, coupled with adverse effects from the uncertainty of U.S. tariff policies, with an expected year-on-year revenue decrease of approximately 16.6%