- 5.6% Revenue Growth Year over Year Led by Strong Demand for Security-Related Engineering Services

- Company Continues to Drive Long-Term Growth and New Initiatives

HONG KONG, Jan. 16, 2026 /PRNewswire/ -- SU Group Holdings Limited (NASDAQ:SUGP) ("SU Group" or the "Company"), an integrated security-related engineering services company in Hong Kong, today announced financial results for the fiscal year ended September 30, 2025, led by strong growth in demand for security-related engineering services, as compared to the fiscal year ended September 30, 2024. All U.S. dollar figures cited in this press release are based on the exchange rate of HK$7.7830 against US$1.00 as of September 30, 2025.

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 5.6% year-over-year revenue growth while navigating a challenging cost environment marked by rising statutory wages, increased employee benefits, and project-specific subcontracting costs. These factors weighed on gross margin and resulted in a net loss for the year; however, we maintained a strong working capital position and exited the year with solid liquidity. Importantly, we continued to invest in operational capabilities, customer support, and geographic expansion to support future scale. As we move forward, our financial priorities are centered on disciplined cost management, margin normalization, and improving cash flow while leveraging our strengthened capital structure to drive long-term shareholder value."

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 HK$10.2 million, or 5.6%, from HK$182.2 million for the fiscal year ended September 30, 2024 to HK$192.4 million (US$24.7 million) for the fiscal year ended September 30, 2025 mainly due to an increase in revenues from the provision of security-related engineering services of HK$4.9 million; and an increase in revenues from security guarding and screening and related vocational training of HK$5.3 million.

Cost of revenues increased by HK$27.1 million, or 20.1%, from HK$134.6 million for the fiscal year ended September 30, 2024 to HK$161.6 million (US$20.8 million) for the fiscal year ended September 30, 2025. The increase was mainly due to an increase employee benefit expenses from HK$60.4 million for the fiscal year ended September 30, 2024 to HK$70.0 million for the fiscal year ended September 30, 2025, mainly in support of the expansion of security guarding and screening business which is labor-intensive and a rise in statutory minimum wage. The increase was consistent with the business growth of security-related engineering services and security guarding and screening, as the Company continues to focus on providing a comprehensive portfolio of security products and solutions, along with experienced, tenured employees.

Gross profit decreased by HK$16.9 million, or 35.4%, from HK$47.6 million for the fiscal year ended September 30, 2024 to HK$30.7 million (US$4.0 million) for the fiscal year ended September 30, 2025. Gross profit margin decreased from 26.1% in the fiscal year ended September 30, 2024 to 16.0% for the fiscal year ended September 30, 2025. The decrease was due to the net impact of a decrease in the gross profit margin of security-related engineering services triggered by certain projects completed during the fiscal year ended September 30, 2025 with a higher use of subcontracting services; and a lower gross profit margin of security guarding services contracts resulting from an increasing labor cost triggered by a rise in statutory minimum wage and salary adjustments.

Gross profit margin of project and maintenance income under security-related engineering services decreased from 32.1% for the fiscal year ended September 30, 2024 to 17.0% for the fiscal year ended September 30, 2025. The decrease was due to certain projects completed during the fiscal year ended September 30, 2025 with a higher use of subcontracting services. Gross profit margin of equipment leasing income under security-related engineering services decreased from 64.6% for the fiscal year ended September 30, 2024 to 58.5% for the fiscal year ended September 30, 2025. The decrease was due to the renewal of certain equipment leasing agreements with more competitive prices offered to the customers. Gross profit margin of security guarding and screening services decreased from 15.1% for the fiscal year ended September 30, 2024 to 12.6% for the fiscal year ended September 30, 2025. The decrease was due to increased labor costs triggered by a rise in statutory minimum wage and salary adjustments.

Selling, general and administrative expenses increased by HK$12.7 million, or 35.2%, from HK$36.0 million for the fiscal year ended September 30, 2024 to HK$48.7 million (US$6.2 million) for the fiscal year ended September 30, 2025. The increase was mainly due to increased promotional activities and campaigns to penetrate the market, combined with the net impact of a provision for allowance for credit loss, and an increase in employee benefit expenses, which was partially offset by a decrease in legal and professional fees.

Losses on disposal of property and equipment increased by HK$1.4 million from HK$0.6 million for the fiscal year ended September 30, 2024 to HK$2.0 million (US$0.3 million) for the fiscal year ended September 30, 2025. The increase was mainly due to the disposal of certain X-ray machines upon the termination of rental equipment agreements during the fiscal year ended September 30, 2025.

Other income decreased by HK$0.2 million, or 17.4%, from HK$1.2 million for the fiscal year ended September 30, 2024 to HK$1.0 million (US$0.1 million) for the fiscal year ended September 30, 2025. The decrease was mainly due to the decrease in net gains on foreign exchange arising from the fluctuation of exchange rates of foreign currencies in relation to our procurement and bank and trade payables balances denominated in foreign currencies.

Income tax benefit was HK$0.6 million (US$0.1 million) for the fiscal year ended September 30, 2025, compared to income tax expenses of HK$1.3 million for the fiscal year ended September 30, 2024. The decrease was mainly due to a decrease in income before income tax and deferred income tax benefits recognized.

As a result of the foregoing, net loss was HK$18.5 million (US$2.4 million) for the fiscal year ended September 30, 2025, compared to a net income of HK$10.7 million for the fiscal year ended September 30, 2024, with a net loss margin of 9.6% for the fiscal year ended September 30, 2025, compared to a net income margin 5.9% for the fiscal year ended September 30, 2024.

The Company had a balance of cash and cash equivalents of HK$25.4 million (US$3.3 million) as of September 30, 2025. Working capital was approximately HK$62.1 million (US$8.0 million) as of September 30, 2025.

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 administrative expenses	(36,028,548)	(48,720,801)	(6,259,900)
Losses on disposal of property and equipment	(636,289)	(2,008,324)	(258,040)
Income (Loss) from operations	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 tax expenses	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 shares
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 to the completion of the share consolidation and re-designation of share capital on August 25, 2025

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 HK$0.10 per share; 749,098,320 ordinary shares authorized and 463,070 and 563,092 ordinary shares issued and outstanding as of September 30, 2024 and 2025, respectively.) *	46,307	56,309	7,235
Class B ordinary shares (par value of HK$0.10 per share; 901,680 ordinary shares authorized and 901,680 and 901,680 ordinary shares issued and outstanding as of September 30, 2024 and 2025, respectively.) *	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 total shareholders' equity	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 consolidation and re-designation of share capital on August 25, 2025

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SOURCE SU Group Holdings Limited

SU Group Holdings Reports Fiscal Year 2025 Financial Results