SU Group Narrows First-Half Operating Loss, Executes on Long-Term Strategy

Public-sector awards added work after the reporting period, while the proposed safety-business acquisition remains subject to approvals.

Rhea-AI Summary

SU Group (Nasdaq: SUGP) narrowed its operating loss to HK$3.9 million for the six months ended March 31, 2026. Revenue fell 20.0% year over year to HK$86.3 million as fewer large engineering projects reduced project and maintenance revenue. Gross margin rose to 20.7% from 20.3%, while selling, general and administrative expenses fell 15.9%. Net loss narrowed to HK$4.2 million, or HK$14.47 per share, from HK$4.5 million, or HK$15.45 per share.

Cash reached HK$28.7 million, versus HK$25.4 million at fiscal year-end; working capital fell to approximately HK$58.6 million from HK$62.1 million. Subsequent awards included HK$18.8 million of additional hospital work and a cultural-facility security contract exceeding US$1 million. A subsidiary agreed to acquire KM Safety Solution for HK$5.6 million in cash, subject to due diligence and required approvals. The interim results are unaudited and unreviewed.

16 points · 2 major

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointHospital follow-on award added HK$18.8 million, bringing disclosed contracts for that project to HK$107.3 million.
• Major point. Forward-looking: it has not happened yet and may not happen.Cultural-facility security contract exceeds US$1 million; the company expected revenue recognition by the end of 2026. 1.2× market cap
• Moderate pointOperating loss narrowed to HK$3.9 million from HK$4.7 million for the six months ended March 31, 2026.
• Moderate pointSelling, general and administrative expenses fell 15.9% year over year to HK$21.0 million.
• Moderate pointCash and cash equivalents rose to HK$28.7 million at March 31, 2026, from HK$25.4 million at September 30, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed KM Safety Solution acquisition would add safety consultancy and Hong Kong emergency-lighting-control distribution rights.
• Moderate pointTotal liabilities fell to HK$34,459,063 at March 31, 2026, from HK$39,797,383 at September 30, 2025.

9 minor points

• Minor pointGross margin improved to 20.7% from 20.3% year over year.
• Minor pointCost of revenues declined 20.3% year over year to HK$68.5 million, reflecting the engineering project mix.
• Minor pointNet loss narrowed to HK$4.2 million from HK$4.5 million; per-share loss fell to HK$14.47 from HK$15.45.
• Minor pointSecurity guarding and screening revenue reached HK$40.9 million, versus HK$40.5 million in the prior-year period.
• Minor pointDisposal losses declined to HK$0.8 million from HK$1.8 million year over year as fewer X-ray machines were disposed of.
• Minor pointFinance expenses fell to HK$5,603 from HK$149,000 year over year.
• Minor pointHuanggang Port award covers supply and installation of six under-vehicle surveillance systems.
• Minor pointCivil Aviation Department contract covers site-safety systems at four navigation-station construction sites.
• Minor pointFortune Jet training approval permits recognized QASRS security training in English, Cantonese and Mandarin.

Negative

• Moderate pointRevenue fell 20.0% year over year to HK$86.3 million as large engineering projects became fewer.
• Moderate point. Forward-looking: it has not happened yet and may not happen.KM Safety Solution purchase consideration is HK$5.6 million in cash under the proposed acquisition.
• Minor pointProject and maintenance revenue declined to HK$44.0 million from HK$65.1 million in the prior-year period.
• Minor pointGross profit fell to HK$17.8 million from HK$22.0 million year over year.
• Minor pointEquipment leasing revenue declined to HK$1.4 million from HK$2.3 million following lease expirations and more favorable renewal terms.

6 minor points

• Minor pointWorking capital fell to approximately HK$58.6 million at March 31, 2026, from HK$62.1 million at fiscal year-end.
• Minor pointKM Safety Solution acquisition requires due diligence and required approvals; completion is not assured.
• Minor pointIncome tax expenses increased to HK$683,092 from HK$359,767 year over year.
• Minor pointOther income declined to HK$367,787 from HK$715,730 year over year.
• Minor pointShareholders' equity fell to HK$83,724,972 at March 31, 2026, from HK$86,150,722 at September 30, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cross-border training program remains a planned collaboration under a three-party memorandum of understanding.

News Explained

SU Group also reports awards to supply and install six under-vehicle surveillance systems at the Huanggang Port crossing and to deploy AI- and IoT-enabled site-safety systems at four Civil Aviation Department construction sites.

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$1.07M Market Cap

On Sep 29, the day this news came out, the latest delayed price for SUGP is 29.54% above the previous close. Argus tracked a peak move of +35.0% during the session. Our momentum scanner has recorded 36 alerts for this stock so far that day. The latest delayed price is $0.67. Relative volume is exceptionally heavy at 27.4x the average.

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Key Figures

Revenue: HK$86.3 million, down 20.0% Operating loss: HK$3.9 million Gross margin: 20.7% +5 more

Revenue

HK$86.3 million, down 20.0%

Six months ended March 31, 2026; prior-year period was HK$107.9 million

Operating loss

HK$3.9 million

Six months ended March 31, 2026; narrowed from HK$4.7 million

Gross margin

20.7%

Six months ended March 31, 2026; compared with 20.3%

Selling, general and administrative expenses

HK$21.0 million, down 15.9%

Six months ended March 31, 2026; prior-year period was HK$24.9 million

Net loss attributable to ordinary shareholders

HK$4.2 million

Six months ended March 31, 2026; narrowed from HK$4.5 million

Cash and cash equivalents

HK$28.7 million

At March 31, 2026; compared with HK$25.4 million at fiscal year-end

Proposed acquisition consideration

HK$5.6 million in cash

Proposed acquisition of KM Safety Solution Company Limited; subject to conditions

Disclosed hospital project value

HK$107.3 million

Combined disclosed contracts after the follow-on award

Historical Context

1 past event · Latest: Aug 26

1 event

1. Aug 26

   Hospital award

   24h Move

   -13.8%

   Follow-on award expanded the same hospital infrastructure project with additional systems.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

form 6-k, share consolidation, cctv, iot

4 terms

form 6-k regulatory

"file its results for the period with the U.S. Securities and Exchange Commission on Form 6-K"

A Form 6-K is a report that companies listed in certain countries file to provide important updates, such as financial results, corporate changes, or other significant information, to regulators and investors. It functions like an official company update or news release, helping investors stay informed about developments that could affect their investment decisions.

share consolidation financial

"Per-share amounts reflect the share consolidation completed on August 6, 2026"

Share consolidation is a process where a company reduces the total number of its shares by combining multiple existing shares into a smaller number of higher-value shares. This can make each share more expensive and potentially improve the company’s image. For investors, it often means their ownership remains the same, but the value of each share increases, which can influence how the stock is perceived and traded.

cctv technical

"covering CCTV, communications, access control and water-leak detection"

Closed-circuit television (CCTV) is a system of cameras and monitors that record and stream video to a private network for surveillance, similar to having a set of watchful eyes around a property that only authorized people can view. For investors, CCTV matters because it affects operating costs, risk management and liability exposure—reducing theft, monitoring operations, and supporting insurance and compliance—while also creating opportunities for recurring revenue from installation, maintenance and data services.

iot technical

"AI- and IoT-enabled site-safety systems at four navigation-station construction sites"

The Internet of Things (IoT) describes a network of everyday devices—such as appliances, vehicles, and equipment—that are connected to the internet and can share data automatically. For investors, IoT represents a growing trend that can drive efficiency and innovation across many industries, potentially creating new opportunities for growth and value. Its expansion influences how companies operate and compete in a digitally connected world.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Business Momentum Led by Public-Sector Awards Across Healthcare, Cultural and Border Infrastructure
• Product Partnerships and Training Expand Reach
• Proposed Acquisition to Add New Enhanced Safety Capabilities

HONG KONG, Sept. 29, 2026 /PRNewswire/ -- SU Group Holdings Limited (Nasdaq: SUGP) ("SU Group" or the "Company"), an integrated security-related services company in Hong Kong, today announced its unaudited and unreviewed financial results for the six months ended March 31, 2026. The Company intends to file its results for the period with the U.S. Securities and Exchange Commission on Form 6-K. The Company noted that on a year over year basis, the adverse impact of fewer large engineering projects in the most recent period led to a decline in revenue, while its operating discipline drove an improvement in gross margin, a narrowed operating loss and an increase in cash from the fiscal year-end balance.

SU Group's Chairman and CEO, Dave Chan, commented, "The first half had fewer large engineering projects, but our operating discipline and stabile guarding and screening business helped us deliver a narrowed operating loss. Our confidence remains higher in the second half of the year led by momentum in our new projects and expanded addressable market. Since March, an HK$18.8 million follow-on hospital award has brought the disclosed value of our work on that project to HK$107.3 million. We have also won public-sector work and added specialized products and training capabilities. Executing those already announced awards, securing new public-sector work , and serving customers with a wider range of solutions are our priorities."

SU Group's Chief Financial Officer, Calvin Kong, noted, "Gross margin remained healthy at 20.7% and selling, general and administrative expenses fell 15.9%, helping offset the lower engineering volume. Cash rose to HK$28.7 million at March 31, 2026 from HK$25.4 million at fiscal year-end. As the new awards move through delivery, we will stay focused on project margins, working capital and cash conversion."

Financial Results for the Six Months Ended March 31, 2026
Revenue decreased HK$21.6 million, or 20.0%, from HK$107.9 million in the prior-year period to HK$86.3 million (US$11.0 million). Project and maintenance revenue decreased from HK$65.1 million to HK$44.0 million, primarily reflecting the adverse impact of fewer large engineering projects in the current period. Security guarding and screening revenue was HK$40.9 million, compared with HK$40.5 million. Equipment leasing revenue declined to HK$1.4 million from HK$2.3 million as some leases expired and customers renewing received more favorable terms.

Cost of revenues declined 20.3% to HK$68.5 million (US$8.7 million), reflecting the change in engineering project mix. Gross profit was HK$17.8 million (US$2.3 million), compared with HK$22.0 million, while gross margin improved to 20.7% from 20.3%.

Selling, general and administrative expenses fell 15.9% to HK$21.0 million (US$2.7 million) from HK$24.9 million. Lower share-based compensation and legal and professional fees more than offset higher administrative payroll costs. Losses on disposal of property and equipment declined to HK$0.8 million from HK$1.8 million, as fewer X-ray machines were disposed of.

Operating loss narrowed to HK$3.9 million (US$0.5 million) from HK$4.7 million. Net loss attributable to ordinary shareholders narrowed to HK$4.2 million (US$0.5 million), or HK$14.47 per share, from HK$4.5 million, or HK$15.45 per share. Per-share amounts reflect the share consolidation completed on August 6, 2026 on a retroactive basis.

Cash and cash equivalents were HK$28.7 million (US$3.7 million) at March 31, 2026, up from HK$25.4 million at September 30, 2025. Working capital was approximately HK$58.6 million (US$7.5 million), compared with HK$62.1 million at fiscal year-end.

Recent Developments
Since March 31, 2026, and not included in the six-month results, SU Group has successfully added significant public-sector work, broadened its product portfolio and expanded its training reach. The largest disclosed award was a follow-on hospital contract, with several new distribution agreements that open additional markets expected to contribute to the Company's future growth.

• Proposed Acquisition Could Add Complementary Capabilities:

• • In September, a SU Group subsidiary agreed to acquire KM Safety Solution Company Limited for HK$5.6 million in cash. KM's safety consultancy work and Hong Kong distribution rights for intelligent emergency lighting controls could complement SU Group's existing offering. The transaction is subject to due diligence, required approvals and other closing conditions, and completion is not assured.

• Public-Sector Projects Deepen an Established Customer Base:

• • A HK$18.8 million (approximately US$2.4 million) follow-on award expanded SU Group's work on a major hospital project to a combined HK$107.3 million (US$13.7 million) in disclosed contracts. The new scope covers nurse call, power quality and lighting management systems, adding to the Company's role in essential healthcare infrastructure.
  • The Company also won a government-linked security contract valued at more than US$1 million for a Hong Kong cultural facility, covering CCTV, communications, access control and water-leak detection; it said at the time that revenue was expected to be recognized by the end of 2026. At the new Huanggang Port border crossing, SU Group was awarded the supply and installation of six under-vehicle surveillance systems. A separate Civil Aviation Department contract calls for AI- and IoT-enabled site-safety systems at four navigation-station construction sites.

• New Distribution Rights Extend the Security and Safety Portfolio:

• • SU Group secured exclusive Hong Kong and Macau distribution rights for HDX's TRACELINE™ PX3 Portable X-Ray System, designed for specialized uses including explosive ordnance disposal and fire investigation. In Macao, its subsidiary obtained exclusive rights to GLM's Inspec Spider, a robotic system for inspecting high-mast lighting from ground level.
  • A distribution agreement with GEZE added automatic door, window, smoke and heat extraction, and other smart-building technologies. SU Group also partnered with Seetrue Screening Ltd. to offer AI-powered X-ray screening in Hong Kong and Macau; compatibility with existing X-ray machines gives the Company a way to approach current as well as new customers. These agreements broaden what SU Group can offer alongside its engineering services, although future sales depend on customer adoption.

• Training Gains a Wider Audience:

• • Fortune Jet became the first provider in Hong Kong approved to deliver recognized QASRS security training in English, Cantonese and Mandarin, widening access for candidates seeking to apply for a Security Personnel Permit. It also signed a three-party memorandum of understanding to develop training, certification and practical-experience services across Shenzhen, Hong Kong and Macau. That cross-border program remains a planned collaboration.

About SU Group Holdings Limited
SU Group (Nasdaq: SUGP) is an integrated security-related services company providing security-related engineering services, security guarding and screening services, and related vocational training in Hong Kong. Through its subsidiaries, it designs, supplies, installs and maintains security systems for private- and public-sector customers. For more information, visit www.sugroup.com.hk.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the planned Form 6-K filing, the Company's strategy, the PX3 distribution opportunity and future sales and project execution. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. These include the risks described in the Company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to update them except as required by law.

(Financial Tables Follow) 

SU GROUP HOLDINGS LIMITED
UNAUDITED AND UNREVIEWED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
		For the Six Months Ended March 31,
		2025				2026 (Unaudited and Unreviewed)				2026 (Unaudited and Unreviewed)
		HK$				HK$				US$
Revenues			107,912,380				86,344,444				11,019,366
Cost of revenues			(85,953,617)				(68,514,067)				(8,743,835)
Gross profit			21,958,763				17,830,377				2,275,531
Operating expenses
Selling, general and administrative expenses			(24,921,087)				(20,970,287)				(2,676,249)
Losses on disposal of property and equipment			(1,772,107)				(778,900)				(99,404)
Loss from operations			(4,734,431)				(3,918,810)				(500,122)
Other income (expenses)
Other income			715,730				367,787				46,937
Finance expenses			(149,000)				(5,603)				(715)
Total other income, net			566,730				362,184				46,222
Loss before income tax expenses			(4,167,701)				(3,556,626)				(453,900)
Income tax expenses			(359,767)				(683,092)				(87,177)
Net loss attributable to SU Group Holdings Limited's ordinary      shareholders			(4,527,468)				(4,239,718)				(541,077)
Net loss per share
Basic and diluted *			(15.45)				(14.47)				(1.85)
Weighted average number of shares
Basic and diluted *			292,972				292,972				292,972
*     The share amounts and per share data are presented on a retroactive basis, giving effect to the completion        of the share consolidation on August 6, 2026

 

SU GROUP HOLDINGS LIMITED
UNAUDITED AND UNREVIEWED CONDENSED CONSOLIDATED BALANCE
SHEETS
		As of September 30, 2025				As of March 31, 2026 (Unaudited and Unreviewed)				As of March 31, 2026 (Unaudited and Unreviewed)
		HK$				HK$				US$
Assets
Current assets
Cash and cash equivalents			25,354,528				28,651,212				3,656,497
Trade receivables, net			34,247,307				34,221,178				4,367,342
Inventories, net			25,770,281				18,561,486				2,368,836
Prepaid expenses and other current assets			5,423,335				4,526,538				577,681
Retention receivables, net			3,729,411				2,756,843				351,831
Prepaid income tax			1,654,240				—				—
Total current assets			96,179,102				88,717,257				11,322,187
Non-current assets
Property and equipment, net			6,810,456				5,205,303				664,306
Intangible assets, net			194,100				604,900				77,198
Goodwill			1,271,160				1,271,160				162,227
Restricted cash			9,890,171				10,111,578				1,290,450
Prepaid expenses and other non-current assets			3,448,366				2,986,966				381,200
Deferred offering expenses			155,763				2,058,550				262,714
Operating lease right-of-use assets, net			6,041,643				5,102,052				651,129
Investment in key management insurance policy			1,343,929				1,389,949				177,387
Deferred tax assets			613,415				736,320				93,970
Total non-current assets			29,769,003				29,466,778				3,760,581
TOTAL ASSETS			125,948,105				118,184,035				15,082,768
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade payables			7,646,188				6,324,678				807,162
Notes payables			1,957,870				1,484,395				189,440
Other payables			1,883,981				561,014				71,597
Accrued payroll and welfare			9,323,383				9,682,055				1,235,634
Operating lease liabilities – current			1,976,643				2,039,968				260,343
Income tax payable			—				201,806				25,755
Contract liabilities			11,340,672				9,862,022				1,258,601
Total current liabilities			34,128,737				30,155,938				3,848,532
Non-current liabilities
Operating lease liabilities – non-current			3,540,340				2,504,275				319,598
Other payables – non-current			1,362,306				1,124,850				143,555
Other liabilities			766,000				674,000				86,017
Total non-current liabilities			5,668,646				4,303,125				549,170
Total liabilities			39,797,383				34,459,063				4,397,702
Commitments and contingencies
Shareholders' equity
Class A ordinary shares (par value of HK$0.5 per share;      149,819,664 ordinary shares authorized and 112,636 and      112,636 ordinary shares issued and outstanding as of      September 30, 2025 and March 31, 2026, respectively.) *			56,309				56,309				7,186
Class B ordinary shares (par value of HK$0.5 per share; 180,336      ordinary shares authorized and 180,336 and 180,336 ordinary      shares issued and outstanding as of September 30, 2025 and      March 31, 2026, respectively.) *			90,168				90,168				11,507
Additional paid-in capital			53,163,910				54,977,878				7,016,333
Retained earnings			32,840,335				28,600,617				3,650,040
Total SU Group Holdings Limited shareholders' equity and      total shareholders' equity			86,150,722				83,724,972				10,685,066
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			125,948,105				118,184,035				15,082,768
*     The share amounts and per share data are presented on a retroactive basis, giving effect to the completion        of the share consolidation on August 6, 2026.

 

U.S. dollar figures are provided solely for convenience at US$1.00 = HK$7.8357, the March 31, 2026 closing rate stated in the interim financial statements. The Company's reporting currency is HK$. Certain comparative current-asset line items were reclassified without affecting total current assets or previously reported results.

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SOURCE SU Group Holdings Limited

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were SU Group's first-half 2026 revenue and losses?

SU Group reported HK$86.3 million in revenue and a HK$4.2 million net loss for the six months ended March 31, 2026. Revenue declined 20.0% year over year, while net loss narrowed from HK$4.5 million. Operating loss narrowed to HK$3.9 million from HK$4.7 million.

What are the terms of SU Group's proposed KM Safety Solution acquisition?

A SU Group subsidiary agreed to acquire KM Safety Solution for HK$5.6 million in cash. The transaction is subject to due diligence, required approvals and other closing conditions, and completion is not assured. The target provides safety consultancy and holds Hong Kong distribution rights for intelligent emergency lighting controls.

Are SU Group's new public-sector awards included in its first-half 2026 results?

The public-sector awards added after March 31, 2026 are not included in the six-month results. They include the hospital follow-on award, cultural-facility security work, six under-vehicle surveillance systems at Huanggang Port and site-safety systems for four Civil Aviation Department navigation-station construction sites.

Why did SU Group's first-half 2026 administrative expenses decline?

Lower share-based compensation and legal and professional fees more than offset higher administrative payroll costs. Selling, general and administrative expenses fell 15.9% to HK$21.0 million from HK$24.9 million in the prior-year period.

Do SU Group's first-half 2026 per-share losses reflect its share consolidation?

The reported per-share amounts retroactively reflect the share consolidation completed on August 6, 2026. Basic and diluted loss per share was HK$14.47 for the six months ended March 31, 2026, compared with HK$15.45 in the prior-year period.