Hong Kong, September 29th / PRNewswire / -- SU Group Holdings Limited (Nasdaq: SUGP) ("SU Group" or "the Company") today announced its unaudited and unreviewed financial results for the six months ending March 31, 2026. The Company stated that it will submit these results to the U.S. Securities and Exchange Commission in accordance with Form 6-K. The Company noted that, compared to the same period last year, a decrease in large-scale engineering projects has had an adverse effect on revenue recently, but operational discipline has led to an improvement in gross margin, a narrowing of operating losses, and an increase in cash balances at the end of the fiscal year.

SU Group Chairman and Chief Executive Officer Dave Chan stated: "There were fewer large-scale engineering projects in the first half of the year, but our operational discipline, as well as stable security and screening services, helped us to narrow our operating losses. With the increased momentum from new projects and the expansion of the market we can serve, we are more confident about the second half of the year. Since March, a follow-up hospital order worth HK$18.8 million has brought the total value of work disclosed on this project to HK$10.73 million. We have also won projects from the public sector and added professional products and training capabilities. Executing the announced orders, pursuing new public sector projects, and serving customers with a wider range of solutions are our priorities."

Chief Financial Officer Calvin Kong stated: "The gross margin remained at a healthy level of 20.7%, and sales, general and administrative expenses decreased by 15.9%, which helped to offset the impact of reduced work volume. As of March 31, 2026, cash increased to HK$28.7 million, compared to HK$25.4 million at the end of the fiscal year. As new orders are gradually delivered, we will continue to focus on project profit margins, working capital, and cash conversion."

Six-month financial performance as of March 31, 2026

Revenue decreased by HK$21.6 million, or 20.0%, from HK$107.9 million in the same period last year to HK$86.3 million (US$11 million). Project and maintenance revenue fell from HK$65.1 million to HK$44 million, mainly reflecting the adverse impact of a reduction in large-scale engineering projects during this period. Security guard and screening revenue was HK$40.9 million, compared to HK$40.5 million in the same period last year. Equipment rental revenue decreased from HK$2.3 million to HK$1.4 million, due to the expiration of some leases and tenants renewing their contracts at more favorable terms.

Revenue costs decreased by 20.3% to HK$68.5 million (US$8.7 million), reflecting changes in the project portfolio. Gross profit was HK$17.8 million (US$2.3 million), compared to HK$22 million in the same period last year; gross margin also increased from 20.3% to 20.7%.

Sales, general and administrative expenses decreased by 15.9% to HK$21 million (US$2.7 million), compared with HK$24.9 million in the same period last year. Lower share-based payment expenses and legal and professional fees offset the higher administrative compensation costs. The loss on disposal of property and equipment decreased to HK$800,000, compared with HK$1.8 million in the same period last year, due to the disposal of fewer X-ray machines.

The operating loss narrowed from HK$4.7 million to HK$3.9 million (US$500,000). The net loss attributable to ordinary shareholders decreased from HK$4.5 million to HK$4.2 million (US$500,000), which is HK$14.47 per share; compared to HK$15.45 per share in the same period last year. The per-share figures have been retrospectively adjusted for the share consolidation completed on August 6, 2026.

As of March 31, 2026, cash and cash equivalents amounted to HK$28.7 million (US$3.7 million), which is higher than HK$25.4 million as of September 30, 2025. Working capital was approximately HK$58.6 million (US$7.5 million), compared to HK$62.1 million at the end of the fiscal year.

Recent Progress

Since March 31, 2026, and not included in the performance for these six months, SU Group has successfully added important public sector business, expanded its product portfolio, and increased the scope of training coverage. The largest order disclosed is a follow-up contract with a hospital, and several new distribution agreements have opened up additional markets, which are expected to contribute to the company's future growth.

• The proposed acquisition can enhance the company's capabilities:

In September, a subsidiary of SU Group agreed to acquire KM Safety Solution Company Limited for HK$5.6 million in cash. The security consulting business of KM and its rights to distribute intelligent emergency lighting control systems in Hong Kong will complement SU Group's existing business. However, this transaction still requires due diligence, obtaining necessary approvals, and meeting other closing conditions, so it is not certain whether it will be completed.

• Deepen the existing customer base for public sector projects:

A subsequent order worth HK$18.8 million (approximately $2.4 million) has expanded SU Group's work on a large hospital project to a total disclosed contract value of HK$107.3 million ($13.7 million). The new scope includes nurse call systems, power quality, and lighting management systems, further expanding the company's role in critical medical infrastructure.

The company also won a government-related contract for security of cultural facilities in Hong Kong, worth over $1 million, which includes closed-circuit television, communication systems, access control, and leak detection; the company stated at the time that the related revenue was expected to be recognized by the end of 2026. At the new Huanggang Port, SU Group obtained a contract to supply and install six sets of undercarriage monitoring systems. There is also a contract with the Civil Aviation Department that requires the deployment of construction site safety systems supported by AI and the Internet of Things at four airport construction sites.

• New distribution rights for expanded security and safety product portfolio:

SU Group has obtained the exclusive distribution rights for TRACELINE ™ PX3 portable X-ray systems in Hong Kong and Macau, which are used for professional purposes such as explosive handling and fire investigation. In Macau, its subsidiary has been granted the exclusive rights for GLM Inspec Spider, which is a robotic system capable of inspecting high-pole lighting from the ground.

The distribution agreement signed with GEZE includes additional services such as automatic doors, windows, smoke and heat emission control, as well as other intelligent building technologies. SU Group also collaborates with Seetrue Screening Ltd to provide AI-powered X-ray screening in Hong Kong and Macau; this solution is compatible with existing X-ray machines, allowing the company to reach both current and new customers. These agreements expand the range of services that SU Group can offer beyond engineering services, but future sales still depend on customer adoption.

• Training reaches a wider audience:

Fortune Jet has become the first institution in Hong Kong to be approved to provide recognized QASRS security training in English, Cantonese, and Mandarin, expanding the channels for candidates applying for security personnel licenses to obtain training. The company has also signed a tripartite memorandum of understanding, aiming to develop training, certification, and practical experience services in Shenzhen, Hong Kong, and Macau. This cross-border project is still currently in the planning stage of cooperation.

About SU Group Holdings Limited

SU Group (Nasdaq: SUGP) is a comprehensive security services company that provides security-related engineering services, security guards and screening services in Hong Kong, as well as related vocational training. Through its subsidiaries, the company designs, supplies, installs, and maintains security systems for both private and public sector clients. For more information, please visit www.sugroup.com.hk.

Forward-looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding the planned submission of a Form 6-K, company strategy, PX3 distribution opportunities, as well as future sales and project execution. These statements reflect current expectations and are subject to risks and uncertainties that may cause actual results to differ significantly from those stated. Such risks include those described in the documents submitted by the company to the U.S. Securities and Exchange Commission. Forward-looking statements are only valid as of the date of this release. Except as required by law, the company assumes no obligation to update these statements.

(Financial statements are attached at the end.)

US dollar figures are provided for convenience only and are converted at the closing exchange rate of March 31, 2026, which is 1 US dollar to 7.8357 Hong Kong dollars. For the exchange rates, please refer to the interim financial statements. The company's reporting currency is Hong Kong dollars. Some comparable current asset items have been reclassified, but this does not affect the total amount of current assets or the results reported previously.