SU Group Holdings Limited (SUGP) Registration Filing summary

Company overview and business model

• Operates as a holding company incorporated in the Cayman Islands, with principal operations through subsidiaries in Hong Kong and Macao, focusing on security-related engineering, security guarding, screening, and vocational training services.

• Shine Union provides turnkey security system design, supply, installation, and maintenance, while Fortune Jet offers security guarding, screening, and training services.

• The company is an integrated provider with a proven track record, serving both private and public sectors, and holds exclusive distribution rights for certain security systems.

• Business model includes project-based contracts, equipment leasing, and recurring maintenance and training services, with a high proportion of revenues from recurring customers.

• No operations or subsidiaries in mainland China; all operations are conducted in Hong Kong and Macao.

Financial performance and metrics

• Revenues grew from HK$136.4M in FY2022 to HK$182.2M in FY2024, with net income rising from HK$8.3M to HK$10.7M over the same period.

• For the six months ended March 31, 2025, revenues increased 17.5% year-over-year to HK$107.9M, but the company recorded a net loss of HK$4.5M due to higher costs and increased SG&A expenses.

• Gross profit margin decreased from 29.3% in FY2023 to 26.1% in FY2024, and further to 20.3% for the six months ended March 31, 2025.

• Cash and cash equivalents as of March 31, 2025 were HK$40.9M (US$5.3M), with working capital of HK$82.5M.

• No outstanding bank borrowings as of the latest reporting period; capital expenditures primarily for equipment and software.

Use of proceeds and capital allocation

• Net proceeds from the offering (estimated at US$25.2M if fully subscribed) will be allocated approximately 30% to strategic acquisitions and investment opportunities, and 70% to general working capital.

• Management has discretion over the use of proceeds, with no specific acquisition targets identified as of the filing.