Wise Ally International Holdings Limited provided earnings guidance for the year ended 31 December 2023. The Group is expected to record a net loss attributable to equity holders of the Company of not more than HKD 3.0 million or a net profit attributable to equity holders of the Company of not more than HK$3.0 million for the year ended 31 December 2023, as compared with the profit attributable to equity holders of the Company amounted to approximately HKD 15.1 million for the year ended 31 December 2022. Expected net loss or decrease in net profit was mainly attributable to (1) a significant fair value loss in financial asset at fair value through profit or loss; (2) a provision on inventories; (3) a significant increase in administrative expenses; and (4) an increase of net finance costs.

The fair value loss in financial asset at fair value through profit or loss arose from remeasurement of the Company's investment in convertible bond issued by Talentone Technology Limited at the reporting year end date at their market value and the impairment assessment on inventories was made pursuant to the applicable accounting standards. As such losses are only provision for impairment nature, they do not affect the Group's cash flow position.