SU Group Holdings Reports Fiscal Year 2025 Financial Results
Rhea-AI Summary
SU Group Holdings (Nasdaq: SUGP) reported fiscal 2025 results for the year ended Sept 30, 2025: revenues rose 5.6% to HK$192.4 million (US$24.7M) while cost of revenues increased 20.1% to HK$161.6 million (US$20.8M), driven by higher employee benefits and subcontracting. Gross profit fell 35.4% to HK$30.7 million and gross margin declined to 16.0%. SG&A rose 35.2% to HK$48.7 million (US$6.2M). The company recorded a net loss of HK$18.5 million (US$2.4M) versus net income of HK$10.7 million a year earlier. Cash and equivalents were HK$25.4 million (US$3.3M) and working capital was HK$62.1 million (US$8.0M).
Positive
- None.
Negative
- Cost of revenues increased by 20.1% to HK$161.6 million
- Gross profit decreased by 35.4% to HK$30.7 million
- Gross profit margin declined from 26.1% to 16.0%
- SG&A expenses rose by 35.2% to HK$48.7 million
- Net result swung to a HK$18.5 million net loss from HK$10.7 million net income
News Market Reaction
On the day this news was published, SUGP declined 1.80%, reflecting a mild negative market reaction. Argus tracked a peak move of +14.2% during that session. Argus tracked a trough of -20.2% from its starting point during tracking. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $217K from the company's valuation, bringing the market cap to $12M at that time. Trading volume was elevated at 2.5x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-news, SUGP was up 6.55% while only one scanned peer (VRME) showed momentum and moved down, indicating today’s setup was stock-specific rather than a sector-wide security services move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 02 | Nasdaq compliance | Positive | +10.2% | Regained Nasdaq compliance on bid price and publicly held shares. |
| Sep 19 | Delisting notice | Negative | -1.1% | Nasdaq delisting notice over publicly held share deficiency. |
| Aug 29 | Compliance warning | Negative | -4.1% | Notification of non-compliance with minimum publicly held shares. |
| Aug 20 | Reverse stock split | Negative | -30.3% | 1-for-10 reverse split and dual-class structure boosting insider control. |
Recent stock moves tended to align with the tone of company-specific and listing-related news, with negative structural or governance items drawing the largest selloffs.
Over the past months, SU Group has focused on Nasdaq listing compliance and capital structure changes. A 1-for-10 reverse split and new dual-class structure sharply increased voting control, which coincided with a -30.34% reaction. Subsequent notices about publicly held share deficiencies weighed on the stock, while regaining full Nasdaq compliance on Oct 02, 2025 drove a 10.16% rebound. Today’s earnings update follows that stabilization phase.
Market Pulse Summary
This announcement highlights 5.6% revenue growth but a clear deterioration in profitability, with gross margin falling to 16.0% and the company posting a net loss of HK$18.5 million. Compared with FY2024’s profitable expansion, FY2025 underscores cost and margin risks. Investors may track progress on cost control, margin recovery, and liquidity, alongside any further impacts from past capital structure and listing-related developments.
AI-generated analysis. Not financial advice.
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- Company Continues to Drive Long-Term Growth and New Initiatives
SU Group's Chairman and CEO, Dave Chan, commented, "Fiscal 2025 was a year of meaningful progress for SU Group as we delivered solid top-line growth driven by continued demand for our security-related engineering services and expanded guarding and screening operations. At the same time, we made deliberate investments in talent, technology, and market penetration, positioning the Company for long-term scale and leadership. While margin pressure impacted near-term profitability due to higher labor costs and subcontracting on select projects, we believe these investments are strengthening our competitive foundation. With a fortified balance sheet, high-profile customer wins, and growing adoption of our AI-aided security solutions, we remain confident in our strategy and focused on executing toward sustainable, profitable growth."
SU Group's Chief Financial Officer, Calvin Kong, noted, "In fiscal 2025, we achieved
SU Group Holdings Limited (Nasdaq: SUGP) provides security-related engineering services and security guarding and screening services:
- Security-related engineering services: The Company offers security-related engineering services to customers, including providing (i) security systems and products, provision of installation, and related maintenance services; (ii) security systems and products only; or (iii) maintenance services only. In addition, SU Group provides equipment rental services to its customers with use of dedicated security-related systems and equipment for contractual periods.
- Security guarding and screening services: The Company provides security guarding services, by dispatching security guards with corresponding abilities and qualifications on demand, to fulfill the customers' needs such as securing and guarding physical properties by, among other things, conducting patrols, entrance guarding, access control and alarm monitoring and response such as fire and gas detection, burglary detection and emergency management such as first aid service and communication and evacuation. SU Group also offers security guarding services targeted at crowd coordination and management, and provides security screening services, where its certified screeners work to detect of explosives, incendiary devices in air cargo consignment and dangerous goods for safety purpose through the operation of threat detection systems. In addition, the Company provides a variety of related vocational training courses.
Financial Results for the Fiscal Year Ended September 30, 2025
Revenues increased by
Cost of revenues increased by
Gross profit decreased by
Gross profit margin of project and maintenance income under security-related engineering services decreased from
Selling, general and administrative expenses increased by
Losses on disposal of property and equipment increased by
Other income decreased by
Income tax benefit was
As a result of the foregoing, net loss was
The Company had a balance of cash and cash equivalents of
About SU Group Holdings Limited
SU Group (Nasdaq: SUGP) is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong. Through its subsidiaries, SU Group has been providing turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems for over two decades. The security systems that SU Group provides services include threat detection systems, traffic and pedestrian control systems, and extra-low voltage systems in private and public sectors, including commercial properties, public facilities, and residential properties in Hong Kong. For more information visit www.sugroup.com.hk.
Forward-Looking Statements
The Company makes forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or similar expressions. These forward-looking statements are based on information available to the Company as of the date of this press release and involve substantial risks and uncertainties. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to a variety of factors, and other risks and uncertainties set forth in our reports filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking statements as a result of new information, future events or developments or otherwise. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
(Financial Tables Follow)
SU GROUP HOLDINGS LIMITED | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
For the Years Ended September 30, | |||||
2024 | 2025 | 2025 | |||
HK$ | HK$ | US$ | |||
Revenues | 182,164,539 | 192,386,583 | 24,718,821 | ||
Cost of revenues | (134,568,099) | (161,643,021) | (20,768,729) | ||
Gross profit | 47,596,440 | 30,743,562 | 3,950,092 | ||
Operating expenses | |||||
Selling, general and | (36,028,548) | (48,720,801) | (6,259,900) | ||
Losses on disposal of property | (636,289) | (2,008,324) | (258,040) | ||
Income (Loss) from | 10,931,603 | (19,985,563) | (2,567,848) | ||
Other income (expenses) | |||||
Other income | 1,219,376 | 1,006,670 | 129,342 | ||
Finance expenses | (189,749) | (148,878) | (19,129) | ||
Total other income, net | 1,029,627 | 857,792 | 110,213 | ||
Income (Loss) before income | 11,961,230 | (19,127,771) | (2,457,635) | ||
Income tax (expenses) benefit | (1,307,742) | 643,294 | 82,654 | ||
Net income (loss) | 10,653,488 | (18,484,477) | (2,374,981) | ||
Net income per share | |||||
Basic and diluted * | 8.18 | (13.36) | (1.72) | ||
Weighted average number of | |||||
Basic and diluted * | 1,302,775 | 1,383,984 | 1,383,984 | ||
* The share amounts and per share data are presented on a retroactive basis, giving effect | |||||
SU GROUP HOLDINGS LIMITED | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
As of September 30, | ||||||
2024 | 2025 | 2025 | ||||
HK$ | HK$ | US$ | ||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 52,338,132 | 25,354,528 | 3,257,681 | |||
Trade receivables, net | 21,851,480 | 20,642,525 | 2,652,258 | |||
Inventories | 47,613,381 | 25,770,281 | 3,311,099 | |||
Prepaid expenses and other current assets | 5,013,876 | 5,423,335 | 696,817 | |||
Contract assets, net | 6,443,947 | 17,334,193 | 2,227,187 | |||
Prepaid income tax | 2,066,219 | 1,654,240 | 212,545 | |||
Total current assets | 135,327,035 | 96,179,102 | 12,357,587 | |||
Non-current assets | ||||||
Property and equipment, net | 8,886,235 | 6,810,456 | 875,043 | |||
Intangible assets, net | 268,500 | 194,100 | 24,939 | |||
Goodwill | 1,271,160 | 1,271,160 | 163,325 | |||
Restricted cash – non-current | — | 9,890,171 | 1,270,740 | |||
Prepaid expenses and other non-current assets | 4,462,823 | 3,448,366 | 443,064 | |||
Deferred offering expenses | — | 155,763 | 20,013 | |||
Operating lease right-of-use assets, net | 5,496,985 | 6,041,643 | 776,261 | |||
Investment in key management insurance policy | 1,157,520 | 1,343,929 | 172,675 | |||
Deferred tax assets | 207,702 | 613,415 | 78,815 | |||
Total non-current assets | 21,750,925 | 29,769,003 | 3,824,875 | |||
TOTAL ASSETS | 157,077,960 | 125,948,105 | 16,182,462 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Trade payables | 8,625,685 | 7,646,188 | 982,422 | |||
Notes payables | 2,355,023 | 1,957,870 | 251,557 | |||
Other payables | 3,499,507 | 1,883,981 | 242,064 | |||
Accrued payroll and welfare | 9,040,942 | 9,323,383 | 1,197,916 | |||
Operating lease liabilities – current | 1,935,187 | 1,976,643 | 253,969 | |||
Contract liabilities | 27,801,257 | 11,340,672 | 1,457,108 | |||
Total current liabilities | 53,257,601 | 34,128,737 | 4,385,036 | |||
Non-current liabilities | ||||||
Operating lease liabilities – non-current | 3,004,974 | 3,540,340 | 454,881 | |||
Other payables – non-current | 1,340,016 | 1,362,306 | 175,036 | |||
Deferred tax liabilities | 431,717 | — | — | |||
Other liabilities | 1,321,956 | 766,000 | 98,420 | |||
Total non-current liabilities | 6,098,663 | 5,668,646 | 728,337 | |||
Total liabilities | 59,356,264 | 39,797,383 | 5,113,373 | |||
Commitments and contingencies | ||||||
Shareholders' equity | ||||||
Class A ordinary shares (par value of | 46,307 | 56,309 | 7,235 | |||
Class B ordinary shares (par value of | 90,168 | 90,168 | 11,585 | |||
Shares subscription receivables | (90) | — | — | |||
Additional paid-in capital | 46,260,499 | 53,163,910 | 6,830,773 | |||
Retained earnings | 51,324,812 | 32,840,335 | 4,219,496 | |||
Total SU Group Holdings Limited shareholders' equity and | 97,721,696 | 86,150,722 | 11,069,089 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 157,077,960 | 125,948,105 | 16,182,462 | |||
* The share amounts are presented on a retroactive basis, giving effect to the completion of the share | ||||||
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SOURCE SU Group Holdings Limited
FAQ
What were SU Group (SUGP) revenues and revenue growth in fiscal 2025?
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