H1 2026
Filed Sep 29, 2026H1 2026 revenue declined 20.0% as project and maintenance revenue fell, while gross profit margin remained stable at 20.7% and net loss was HK$4.2 million.
Revenue and gross profit declined on a weaker project and maintenance revenue mix, but gross margin was stable, operating loss narrowed, finance expense fell sharply, and net loss was lower than the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, six months ended March 31, 2026other | HK$86,344,444 | – | decreased by approximately HK$21.6 million, or 20.0% |
| Cost of revenues, six months ended March 31, 2026other | HK$(68,514,067) | – | decreased by HK$17.5 million, or 20.3% |
| Gross profit, six months ended March 31, 2026other | HK$17,830,377 | – | decreased by HK$4.2 million, or 18.8% |
| Gross profit margin, six months ended March 31, 2026other | 20.7% | – | maintained stable |
| Selling, general and administrative expenses, six months ended March 31, 2026other | HK$(20,970,287) | – | decreased by HK$4.0 million, or 15.9% |
| Losses on disposal of property and equipment, six months ended March 31, 2026other | HK$(778,900) | – | decreased by HK$1.0 million, or 56.0% |
| Loss from operations, six months ended March 31, 2026other | HK$(3,918,810) | – | – |
| Other income, six months ended March 31, 2026other | HK$367,787 | – | decreased by HK$0.3 million, or 48.6% |
| Finance expenses, six months ended March 31, 2026other | HK$(5,603) | – | decreased by HK$143,397, or 96.2% |
| Total other income, net, six months ended March 31, 2026other | HK$362,184 | – | – |
| Loss before income tax expenses, six months ended March 31, 2026other | HK$(3,556,626) | – | – |
| Income tax expenses, six months ended March 31, 2026other | HK$(683,092) | – | increased by HK$0.3 million, or 89.9% |
| Net loss attributable to SU Group Holdings Limited's ordinary shareholders, six months ended March 31, 2026other | HK$(4,239,718) | – | maintained stable |
| Net loss per share, basic and diluted, six months ended March 31, 2026other | HK$(14.47) | – | – |
| Weighted average number of shares, basic and diluted, six months ended March 31, 2026other | 292,972 | – | – |
| Cash and cash equivalents, as of March 31, 2026other | HK$28,651,212 | – | – |
| Restricted cash, as of March 31, 2026other | HK$10,111,578 | – | – |
| Notes payables, as of March 31, 2026other | HK$1,484,395 | – | – |
| Total assets, as of March 31, 2026other | HK$118,184,035 | – | – |
| Total liabilities, as of March 31, 2026other | HK$34,459,063 | – | – |
| Total shareholders' equity, as of March 31, 2026other | HK$83,724,972 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Project and maintenanceThe decrease was mainly attributable to the change in contract size mix. The prior-year period included one project of over HK$17 million, one project of over HK$8 million, one project of over HK$2 million, and seven projects of over HK$1 million, compared with one project of over HK$4 million, one project of over HK$2 million, and four projects of over HK$1 million in H1 2026. | HK$44M | – | decreased by HK$21.1 million, or 32.3% |
| Provision of security guarding and screening servicesRevenue was HK$40.9 million for the six months ended March 31, 2026 compared to HK$40.5 million for the six months ended March 31, 2025. | HK$40.9M | – | maintained stable |
| Equipment leasingCertain customer equipment leasing agreements expired, and the Company offered more preferential rental terms to customers renewing agreements after the original lease term. | HK$1.4M | – | decreased by HK$0.9 million, or 36.9% |
What drove it
- Project and maintenance revenue declined because fewer large-revenue projects were recognized in H1 2026.
- Cost of revenues declined due to the contract size mix of security-related engineering services and fewer sizable projects recognized.
- Gross profit margin was 20.7%, compared to 20.3% in the prior-year period.
- Selling, general and administrative expenses declined on lower non-employee share-based compensation, employee share-based compensation, and legal and professional fees.
- Administrative payroll costs increased to HK$9.3 million from HK$7.7 million, triggered by annual salary adjustment and changes in headcount.
- Finance expenses fell due to reduced utilization of banking facilities.
- In September 2026, the Company was awarded exclusive distributorship of HDX's TRACELINE™ PX3 Portable X-Ray System in Hong Kong and Macau.
Concerns
- Total revenue declined 20.0%, led by a 32.3% decline in project and maintenance revenue.
- Equipment leasing revenue declined 36.9% following customer agreement expirations and preferential renewal terms.
- The Company remained loss-making, reporting net loss attributable to ordinary shareholders of HK$4,239,718.
- Income tax expenses increased by HK$0.3 million, or 89.9%, despite the loss before income tax expenses.
- Other income declined primarily because of lower interest income from bank deposits.
What to watch
- Recognition and size mix of project and maintenance contracts.
- Whether stable security guarding and screening services revenue continues to offset variability in project revenue.
- Equipment leasing revenue following expired customer agreements and preferential renewal terms.
- The contribution from the exclusive PX3 distributorship in Hong Kong and Macau.
- Administrative payroll costs and the extent to which lower share-based compensation and legal and professional fees persist.
Balance sheet and cash flow
- Cash and cash equivalents were HK$28,651,212 as of March 31, 2026, compared to HK$25,354,528 as of September 30, 2025.
- Restricted cash was HK$10,111,578 as of March 31, 2026, compared to HK$9,890,171 as of September 30, 2025.
- Trade receivables, net were HK$34,221,178 as of March 31, 2026, compared to HK$34,247,307 as of September 30, 2025.
- Inventories, net were HK$18,561,486 as of March 31, 2026, compared to HK$25,770,281 as of September 30, 2025.
- Total current assets were HK$88,717,257 as of March 31, 2026, compared to HK$96,179,102 as of September 30, 2025.
- Total current liabilities were HK$30,155,938 as of March 31, 2026, compared to HK$34,128,737 as of September 30, 2025.
- Total liabilities were HK$34,459,063 as of March 31, 2026, compared to HK$39,797,383 as of September 30, 2025.
- No operating cash flow, capital expenditure, or free cash flow was reported.
Analysis
SU Group Holdings reported H1 2026 revenue of HK$86,344,444, down from HK$107,912,380 in H1 2025. The decline was concentrated in project and maintenance revenue, which fell to HK$44.0 million from HK$65.1 million as the period included fewer larger projects. Security guarding and screening services revenue was stable at HK$40.9 million compared with HK$40.5 million, while equipment leasing revenue declined to HK$1.4 million from HK$2.3 million.
The lower revenue base reduced gross profit to HK$17,830,377 from HK$21,958,763. Cost of revenues decreased 20.3% on the same project-size mix effect, and gross profit margin was stable at 20.7% compared with 20.3%. This margin stability indicates that the revenue decline was primarily a volume and contract-mix issue rather than a reported deterioration in gross profitability.
Operating expenses moved favorably. Selling, general and administrative expenses declined to HK$20,970,287 from HK$24,921,087, reflecting lower non-employee and employee share-based compensation and lower legal and professional fees. The expense decline was partly offset by administrative payroll costs rising to HK$9.3 million from HK$7.7 million. Lower disposal losses also contributed, narrowing loss from operations to HK$3,918,810 from HK$4,734,431.
Below operations, other income fell to HK$367,787 from HK$715,730 because of lower bank-deposit interest income, while finance expenses declined to HK$5,603 from HK$149,000 following reduced banking-facility utilization. Income tax expenses rose to HK$683,092 from HK$359,767. Net loss attributable to ordinary shareholders was HK$4,239,718, compared with HK$4,527,468 in H1 2025.
The balance sheet showed HK$28,651,212 of cash and cash equivalents and HK$10,111,578 of restricted cash as of March 31, 2026. Inventories declined to HK$18,561,486 from HK$25,770,281 as of September 30, 2025, while total liabilities declined to HK$34,459,063 from HK$39,797,383. The September 2026 exclusive PX3 distributorship adds a new product authorization in Hong Kong and Macau, but the filing provided no quantitative outlook, revenue contribution, or profitability expectation for this development.
Not in the filing
stated, not guessed- Forward guidance
- Prior outlook for comparison
- Operating cash flow
- Capital expenditures
- Free cash flow
- Share repurchases
- Dividends
- Non-GAAP metrics
- Named executive commentary or executive quotes
- Explicit financial reporting framework
- Total debt figure
- Quantitative contribution or outlook for the PX3 distributorship
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.