SU Group Holdings Reports First Half Fiscal Year 2024 Results

Core Insights - SU Group Holdings Limited reported a 4.4% increase in gross profit for the six months ending March 31, 2024, driven by higher-margin segments despite a slight decline in total revenue [2][6]. - The company experienced an 11.7% year-over-year increase in revenues from security guarding and screening services, while total revenues decreased by approximately 5.4% due to timing shifts in contract recognition [6][24]. Financial Performance - Revenues decreased to approximately HK$91.8 million for the six months ended March 31, 2024, down from HK$97.0 million for the same period last year [24]. - Cost of revenues decreased by 8.8% to HK$65.2 million, resulting in a gross profit of HK$26.6 million, which is a 4.4% increase from HK$25.5 million [3][17]. - Net income remained stable at HK$10.1 million (US$1.3 million) for the six months ended March 31, 2024, compared to the same period last year [19]. Cash Position - Cash and cash equivalents increased nearly 200% year-over-year to HK$47.2 million (US$6.0 million) as of March 31, 2024, bolstered by the successful completion of the initial public offering [2][5]. - Working capital stood at approximately HK$77.0 million (US$9.9 million) as of the same date [5]. Expenses and Taxation - Selling, general and administrative expenses rose by 12.7% to HK$15.6 million, primarily due to increased professional service fees associated with being a public entity [8]. - Income tax expenses decreased by 45.0% to HK$1.0 million, attributed to a reduction in income before tax and assessable profits of certain subsidiaries [9]. Segment Performance - Revenues from security guarding and screening services increased to HK$35.6 million, while revenues from project and maintenance services decreased by 12.4% to HK$53.6 million [24]. - Equipment leasing revenues saw a significant decline of 34.1%, dropping to HK$2.6 million [24]. Strategic Outlook - The company aims to enhance operational efficiency and expand its portfolio of security-related engineering services to capture increased revenue opportunities in higher-margin segments [2][16]. - The management remains focused on building value for shareholders through strategic partnerships and leveraging its core business platform for growth [16].