SU Group Holdings Limited reported fiscal 2025 revenue of HK$192.4 million (US$24.7 million), a 5.6% increase from HK$182.2 million (US$23.4 million) in 2024. The growth was driven by stronger demand for security‑related engineering services and expanded guarding and screening operations, offsetting headwinds in legacy service lines.
The company posted a net loss of HK$18.5 million (US$2.4 million) for the year, compared with a net income of HK$10.7 million (US$1.4 million) in 2024. Gross profit fell to HK$30.7 million (US$4.0 million) from HK$47.6 million (US$6.1 million) the prior year, shrinking the gross‑profit margin from 26.1% to 16.0%. Margin compression was driven by higher labor costs, increased employee benefits, and greater use of subcontracting on select projects, which eroded the company’s pricing power in its core segments.
Cash and liquidity remained robust, with a cash position of HK$25.4 million (US$3.3 million) at year‑end. Management emphasized that the company is investing heavily in talent, technology, and market penetration to support long‑term scale, even as short‑term profitability is pressured by cost inflation.
CEO Dave Chan said the year was a “year of meaningful progress” and that the company’s investments in AI‑aided security solutions and geographic expansion are positioning it for future growth. CFO Calvin Kong noted that while margin pressure led to a net loss, the firm maintained a solid working‑capital position and continued to fund operational capabilities and customer support.
Analysts had expected revenue of US$24.7 million and an EPS of $0.00. The company beat revenue expectations by $24.7 million, but missed the EPS estimate, reporting a negative EPS of $-1.72. Investor reaction was mixed, reflecting the tension between revenue growth and margin compression, with some investors focusing on the company’s strategic investments and others concerned about the immediate profitability hit.
The company did not provide new forward guidance for 2026, but management’s focus on talent and technology investments signals confidence in long‑term demand for its security services, while the current loss underscores the need for disciplined cost management in the near term.
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