HONG KONG, July 9, 2025 /PRNewswire/ -- SU Group Holdings Limited (Nasdaq: SUGP) ("SU Group" or the "Company"), an integrated security-related engineering services company in Hong Kong, today announced it has been awarded the largest contract in the Company's history, valued at HK$88.5 million (approximately US$11.3 million).The landmark contract involves the design, delivery, and integration of a full spectrum of security, monitoring, public address, and safety systems for a major hospital expansion and up ...

Core Viewpoint - SU Group Holdings Limited is currently not in compliance with Nasdaq's minimum bid price requirement due to its ordinary shares closing below $1.00 for 30 consecutive business days, but it has a compliance period of 180 days to regain compliance [1][2]. Company Overview - SU Group Holdings Limited is an integrated security-related services company based in Hong Kong, providing security-related engineering services, security guarding, screening services, and vocational training services [3]. - The company has over two decades of experience in delivering turnkey services for security systems, including threat detection, traffic control, and extra-low voltage systems across various sectors in Hong Kong [3]. Compliance and Future Actions - The company has a compliance period until September 16, 2025, to meet the minimum bid price requirement, and if the closing bid price reaches at least $1.00 for 10 consecutive business days, Nasdaq will confirm compliance [1]. - The company intends to monitor its share price and may consider options such as a reverse stock split to regain compliance with Nasdaq's requirements [2].

Core Viewpoint - SU Group Holdings Limited has successfully provided access control gates for one of Asia's largest multi-purpose sports, entertainment, and leisure parks, enhancing security and operational efficiency for large-scale events [1][2]. Group 1: Company Achievements - The installation of access control gates represents a significant achievement for SU Group, reinforcing its operational model and ability to manage large-scale security programs [2]. - This project is expected to enhance the company's visibility and serve as a catalyst for further business expansion, contributing to a positive revenue outlook for 2025 [2]. Group 2: Product Advantages - Enhanced Security: The access control gates manage the flow of people, reducing unauthorized access and security breaches, and can integrate with other security systems [6]. - Crowd Management: The gates ensure that only ticketed individuals can enter specific areas, preventing overcrowding and facilitating smoother crowd flow [6]. - Faster Entry: Automation of the entry process significantly reduces wait times, improving the experience for attendees [6]. - Revenue Protection: The gates help ensure that only ticket holders can enter, protecting against unauthorized entry and potential revenue loss [6]. - Health and Safety Compliance: The gates monitor capacity limits and can assist in maintaining social distancing during health crises [6]. - Tracking and Analytics: Data collected from the gates can inform better planning and decision-making for future events [6]. Group 3: Company Overview - SU Group Holdings Limited is an integrated security-related services company in Hong Kong, providing security engineering services, guarding, screening, and vocational training for over two decades [4]. - The company offers turnkey services for security systems, including threat detection and crowd control systems, across various sectors [4].

Dividend Policy - For the fiscal year ended September 30, 2022, Shine Union declared dividends of HK$25.3 million, while Fortune Jet declared HK$0.4 million, totaling HK$25.7 million[37]. - For the fiscal years ended September 30, 2023 and 2024, no dividends were declared by either Shine Union or Fortune Jet, reflecting a shift in dividend policy[37]. - The company intends to retain all available funds and future earnings for business operations and expansion, with no anticipated dividends in the foreseeable future[36]. - The company does not expect to pay dividends in the foreseeable future, which may affect the return on investment for shareholders[36]. - The Company declared dividends of HK$8.0 million for the fiscal year ended September 30, 2022, with no dividends declared for 2023 and 2024[183]. - The company does not expect to pay dividends in the foreseeable future, focusing instead on business development and growth[198]. Financial Performance - Revenues increased from HK$ 136.45 million in 2022 to HK$ 163.69 million in 2023, representing a growth of 20.5%[46]. - Gross profit for 2023 was HK$ 48.04 million, a 22.4% increase compared to HK$ 39.23 million in 2022[46]. - Net income rose to HK$ 9.80 million in 2023, up 18.8% from HK$ 8.25 million in 2022[46]. - For the fiscal years ended September 30, 2022, 2023, and 2024, the company's revenues were HK$136.4 million, HK$163.7 million, and HK$182.2 million (US$23.4 million), respectively[181]. - The net income for the same periods was HK$8.3 million, HK$9.8 million, and HK$10.9 million (US$1.4 million), respectively[181]. Assets and Liabilities - As of September 30, 2022, the company reported total assets of HK$XXX million (exact figure not provided in the content) and total liabilities of HK$XXX million (exact figure not provided in the content)[44]. - Total assets grew significantly from HK$ 93.54 million in 2022 to HK$ 157.08 million in 2024, marking a 77.9% increase[47]. - Total liabilities increased slightly from HK$ 58.02 million in 2023 to HK$ 59.36 million in 2024, indicating a modest growth of 2.3%[47]. - Total shareholders' equity surged from HK$ 56.42 million in 2023 to HK$ 97.72 million in 2024, reflecting a growth of 73.2%[47]. Cash Flow and Management - Cash and cash equivalents at the end of 2024 reached HK$ 52.34 million, a substantial increase from HK$ 16.40 million in 2023[47]. - Net cash provided by operating activities turned positive in 2024 at HK$ 14.10 million, recovering from a negative HK$ 13.54 million in 2023[47]. - The company has implemented an internal cash management policy to ensure financial control and liquidity management, overseen by the Chief Financial Officer[39]. Regulatory Environment - The company has not been identified as a Commission-Identified Issuer under the Holding Foreign Companies Accountable Act, reducing the risk of trading prohibitions in the U.S.[42]. - The PRC government has initiated regulatory actions that could impact business operations, including increased supervision of companies listed overseas[64]. - The company believes it is not currently required to obtain approval from the PRC government for trading its ordinary shares on Nasdaq[63]. - The company is not subject to cybersecurity review by the CAC, as it does not possess a large amount of personal information from mainland China[64]. - The company has determined it is not subject to merger control review by China's anti-monopoly enforcement agency due to its revenue levels[64]. - The implementation of the national security law in Hong Kong could trigger sanctions that may economically harm the company[69]. - The company faces uncertainties regarding the interpretation and enforcement of PRC laws, which could materially affect its operations[70]. - Future government actions in the PRC could significantly limit the company's ability to offer securities to investors, potentially causing a decline in share value[66]. Customer Base and Revenue Sources - For the fiscal years ended September 30, 2022, 2023, and 2024, the company had 319, 351, and 352 recurring customers, representing approximately 72.7%, 79.8%, and 81.5% of the total number of customers, respectively[101]. - Approximately 80.9%, 81.1%, and 61.8% of the company's revenues from security-related engineering services were contributed by recurring customers for the fiscal years ended September 30, 2022, 2023, and 2024, respectively[101]. - Approximately 74.2%, 76.9%, and 88.2% of the company's revenues from security guarding and screening services were contributed by recurring customers for the fiscal years ended September 30, 2022, 2023, and 2024, respectively[101]. - Revenue from private sector projects accounted for 86.8%, 82.3%, and 86.2% of total revenue for the fiscal years ended September 30, 2022, 2023, and 2024, respectively[189]. - Revenue from public sector projects represented 13.2%, 17.7%, and 13.8% for the same fiscal years[189]. Operational Risks - The company may face difficulties in maintaining or improving relationships with recurring customers, which could adversely affect its business and financial condition[104]. - The company relies heavily on contracts from recurring customers, and any decrease or loss of business from these customers may adversely affect its financial condition[101]. - The company is subject to various government and regulatory interferences, which could materially change its operations and the value of its ordinary shares[93]. - The company faces risks related to managing multiple service segments, which may adversely affect business operations and financial condition[139]. - The company has a short operating history in security guarding and screening services, which may lead to difficulties in managing and integrating these operations[141]. - The company may face penalties for manpower shortages if it fails to provide the required number of staff as stated in tender contracts[130]. - The company relies on a stable supply of labor for its services, and any labor shortages or increases in labor costs could harm its business and profitability[124]. Shareholder and Corporate Governance - Directors and officers collectively own 71.2% of the total voting power of the company's outstanding ordinary shares[59]. - The Chairman and CEO, Mr. Chan Ming Dave, owns approximately 9,116,800 ordinary shares, representing about 65.8% of the outstanding shares, giving him significant influence over corporate decisions[208]. - The company’s amended and restated memorandum and articles of association contain anti-takeover provisions that could adversely affect shareholders' rights[207]. - Shareholders have limited rights under Cayman Islands law to inspect corporate records or to requisition general meetings[212]. - The company may face challenges in protecting shareholder interests due to its incorporation under Cayman Islands law, which may differ from U.S. regulations[213]. Internal Controls and Compliance - The company identified material weaknesses in its internal control over financial reporting, including a lack of accounting staff knowledgeable in U.S. GAAP and SEC compliance[223]. - The company is required to include a report on its internal control over financial reporting in its annual report for the fiscal year ending September 30, 2024, as mandated by the Sarbanes-Oxley Act[224]. - The company has taken remedial measures to address identified weaknesses but acknowledges that these may not fully resolve the issues[223]. - Ineffective internal controls could result in material misstatements in financial statements and loss of investor confidence, impacting access to capital markets[225]. - The company may experience increased debt service obligations if it incurs additional indebtedness[226]. - The company’s management may conclude that its internal controls are not effective, which could lead to qualified reports from independent auditors[224]. Market Conditions and Competition - The company faces significant competition in the security-related engineering services industry, which may exert downward pressure on pricing and profit margins[186]. - The trading price of the Company's ordinary shares may be volatile, influenced by various external factors[191]. - Nasdaq may apply additional criteria for continued listing due to the large portion of securities held by insiders[200]. - The market price for the company's ordinary shares could be adversely affected by increased tensions between the United States and China, impacting investor confidence[100]. - The company may experience extreme volatility in its ordinary shares, which could make it difficult for prospective investors to assess their value[201]. Legal and Regulatory Compliance - The company may incur substantial legal and accounting expenses as a public reporting company, particularly after it ceases to qualify as an emerging growth company[221]. - The Cayman Islands' Economic Substance Legislation may impact the company, requiring compliance with economic substance tests[216]. - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements under the JOBS Act[217]. - The company does not believe it was a Passive Foreign Investment Company (PFIC) for the fiscal year ended September 30, 2024, but future fluctuations in share price could affect this status[205]. - The company is exempt from certain provisions applicable to U.S. domestic public companies, including quarterly reporting requirements[219].

Core Viewpoint - SU Group Holdings Limited reported strong financial results for the fiscal year ended September 30, 2024, with significant growth in revenue and net income compared to the previous fiscal year, supported by strategic investments and operational efficiency [2][4]. Financial Performance - Revenues increased by 11.3% to HK$182.2 million (US$23.4 million) for the fiscal year ended September 30, 2024, up from HK$163.7 million (US$21.0 million) in the previous year [6][26]. - Net income rose by 8.7% to HK$10.7 million (US$1.4 million) for the fiscal year ended September 30, 2024, compared to HK$9.8 million (US$1.3 million) for the fiscal year ended September 30, 2023 [16][26]. - The net income per share increased to HK$0.82 from HK$0.81 year over year [6][26]. Business Segments - The security-related engineering services business saw a revenue increase of 9.0% to HK$107.0 million (US$13.8 million) for the fiscal year ended September 30, 2024, from HK$98.1 million (US$12.5 million) in the previous year [8][6]. - The company provides a range of services including security systems installation, maintenance, and security guarding and screening services [5][7]. Cost and Profitability - Cost of revenues increased by 16.4% to HK$134.6 million (US$17.3 million) for the fiscal year ended September 30, 2024, from HK$115.6 million (US$14.9 million) in the previous year [9][26]. - Gross profit slightly decreased by 0.9% to HK$47.6 million (US$6.1 million) for the fiscal year ended September 30, 2024, down from HK$48.0 million (US$6.2 million) [10][26]. - The gross profit margin was 26.1% for the fiscal year ended September 30, 2024, compared to 29.3% in the previous year [11][26]. Operational Efficiency - Selling, general and administrative expenses decreased by 2.1% to HK$36.0 million (US$4.6 million) for the fiscal year ended September 30, 2024, from HK$36.8 million (US$4.7 million) [12][26]. - The company achieved a significant reduction in trade receivables, decreasing by 37.5% to HK$21.9 million (US$2.8 million) as of September 30, 2024, from HK$35.0 million (US$4.5 million) [17][26]. Cash Flow and Capital Structure - Net cash provided by operating activities was HK$14.1 million (US$1.8 million) for the fiscal year ended September 30, 2024, compared to a net cash used in operating activities of HK$13.5 million (US$1.7 million) in the previous year [21][26]. - The company had a cash and cash equivalents balance of HK$52.3 million (US$6.7 million) and working capital of approximately HK$82.1 million (US$10.6 million) as of September 30, 2024 [22][26].

Core Viewpoint - SU Group Holdings Limited has been selected to enhance security at a premier Class A office building in Hong Kong, indicating a growing demand for high-security solutions in the region [1][4]. Group 1: Company Overview - SU Group is an integrated security-related services company based in Hong Kong, providing engineering services, security guarding, and vocational training for over two decades [5]. - The company specializes in designing, supplying, installing, and maintaining security systems for various sectors, including commercial properties and public facilities [5]. Group 2: Security Solutions - The company will install high-security integrated lintel roller shutters that are designed to withstand physical attacks and feature advanced locking systems [2][3]. - These shutters are manufactured by Charter Global/U.K. and certified to LPS 1175 Issue 7 SR2, ensuring high standards of security [3]. Group 3: Market Demand and Future Outlook - The increasing threats of smash-and-grab incidents and rising costs associated with theft are driving demand for high-security roller shutters [4]. - The company anticipates that this recent contract win will lead to a significant increase in sales moving forward [4].

Core Viewpoint - SU Group Holdings Limited has announced a sale of AI-aided X-ray screeners to one of Asia's largest airlines, marking a significant step in enhancing security measures in air cargo screening [1][2]. Company Overview - SU Group is an integrated security-related services company based in Hong Kong, providing engineering services, security guarding, screening services, and vocational training for over two decades [4]. Product Details - The airline will initially purchase 11 AI-aided X-ray screeners designed to identify dangerous goods and prohibited items in air cargo [1]. - SU Group's proprietary Threat Stopper adaptable AI-aided X-ray screeners offer enhanced security, efficiency, and adaptability, contributing to safer airport operations [1][2]. Market Trends - There is an increasing demand for AI-aided X-ray screeners driven by factors such as: - Increased detection accuracy through AI-enhanced systems that reduce human error [3]. - Speed and efficiency improvements, allowing quicker processing times for luggage and cargo [3]. - Consistency in performance, as AI systems do not suffer from fatigue [3]. - Adaptability to new threats, with AI systems capable of being updated to recognize emerging dangers [3]. - Cost savings from improved efficiency and reduced need for manual checks [3]. - Enhanced safety and customer trust, as better security measures foster passenger confidence [3]. - Compliance with regulatory requirements, helping airlines meet increasing security standards [3].

Core Insights - SU Group Holdings Limited has secured a landmark contract worth US$4.4 million, marking the largest in the company's history, with US$3.2 million recognized as revenue in 2024 and the remainder in 2025 [1][5] Group 1: Contract Details - The contract involves the design and installation of an integrated security and monitoring system for the hostel and academic building complex at Hong Kong Baptist University (HKBU) [2] - The HKBU complex features 1,700 living spaces and a four-level Creative Hub, which includes advanced facilities such as an eSports stadium and a state-of-the-art film score recording studio [3] - The project represents the first phase of HKBU's development program, positioning the company for future phases [4] Group 2: System Features - SU Group's security system is cloud-based and AI-enhanced, integrating various subsystems including CCTV, alarms, and access control [4] - Over 2,000 access control doors and customized pedestrian gates were designed and installed as part of the project [4] Group 3: Strategic Importance - The contract is significant not only for its revenue but also for its potential to serve as a high-profile reference for the company, showcasing its capabilities in the education sector [5] - The project opens up new market opportunities for SU Group in providing security solutions to colleges and campuses [5] Group 4: Company Overview - SU Group is an integrated security-related services company in Hong Kong, providing engineering services, security guarding, and vocational training for over two decades [6] - The company specializes in designing, supplying, installing, and maintaining security systems for various sectors, including commercial and public properties [6]

Core Viewpoint - SU Group Holdings Limited has entered a new market by installing a Smart Site Safety System (4S) at a major Hong Kong hospital, leveraging AI and IoT technologies to enhance safety in construction sites, which is now mandated by the Hong Kong Government [1][2][4]. Industry Summary - The Hong Kong Government is prioritizing the integration of AI and IoT in Smart Site Safety Systems (4S) to improve safety management in public works contracts, making 4S mandatory as of July 1, 2024 [2][4]. - The government has identified that many construction accidents could have been avoided with timely alerts to site personnel, highlighting the need for advanced safety systems [2]. Company Summary - SU Group is an integrated security-related engineering services company that has been providing security solutions for over two decades, including threat detection and traffic control systems [6]. - The 4S system developed by SU Group utilizes IoT sensors for continuous monitoring of structural stability, environmental conditions, and worker movements, aiming to prevent accidents through real-time data analysis [3][5]. - The system features include AI-based safety monitoring, centralized management dashboards, digitized tracking of site equipment, and real-time alerts for unsafe conditions [5].

Company Overview - SU Group Holdings Limited is an integrated security-related engineering services company based in Hong Kong, primarily providing security-related engineering services, security guarding and screening services, and related vocational training services [4] - The company has been offering turnkey services for over two decades, including the design, supply, installation, and maintenance of security systems for various sectors [4] Key Announcement - SU Group announced that its wholly owned unit, Shine Union Limited, has been certified under the Good Employer Charter 2024 by Hong Kong's Labour Department [1] - The Good Employer Charter 2024 emphasizes the importance of human capital and the need for family-friendly employment practices to enhance employee retention and efficiency [2] Strategic Importance - The Chairman and CEO of SU Group, Dave Chan, highlighted the strategic, social, and ethical reasons for prioritizing family-friendly policies, stating that such policies improve employee engagement and retention while enhancing the company's reputation as an employer of choice [3] - The adoption of family-friendly benefits is seen as a win-win strategy, making the company more attractive to job candidates and supporting employees in managing their work-life balance [3]