SU Group Holdings Limited (SUGP) Registration Filing summary

Company overview and business model

• Operates as a holding company with subsidiaries in Hong Kong, providing security-related engineering, security guarding, screening, and vocational training services.

• Shine Union focuses on design, supply, installation, and maintenance of security systems; Fortune Jet provides security guarding, screening, and training.

• Business model includes project-based engineering, equipment leasing, and recurring service contracts, with a strong presence in both private and public sectors.

• Recent expansion includes new contracts for hospital infrastructure and ongoing efforts to deepen market penetration and enhance proprietary product offerings.

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, revenue was HK$107.9M, but a net loss of HK$4.5M was recorded due to increased costs and lower gross margins.

• Gross profit margin declined from 29.3% in FY2023 to 26.1% in FY2024, mainly due to higher labor and subcontracting costs.

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

• Customer concentration risk: one customer accounted for over 10% of revenue in FY2024; supplier concentration is also notable.

Use of proceeds and capital allocation

• Net proceeds of approximately US$25M are expected from the offering, with 30% allocated to strategic acquisitions and investment opportunities, and 70% for general working capital.

• Management has discretion over the use of proceeds, and no acquisition targets have been identified as of the filing date.