Hong Kong-based SU Group Holdings (NASDAQ:SUGP), an integrated provider of security-related engineering services, today announced financial results for the fiscal year ended September 30, 2025.
Consolidated revenue increased 5.6% to HK$192.4 million (US$24.7 million) from HK$182.2 million in fiscal 2024, primarily driven by a HK$4.9 million rise in security-related engineering services and a HK$5.3 million increase in security guarding, screening, and related vocational training revenue.
Cost of revenues rose 20.1% to HK$161.6 million (US$20.8 million) from HK$134.6 million, largely due to higher employee benefit expenses of HK$70 million (up from HK$60.4 million), reflecting the expansion of the labor-intensive security guarding and screening business and increases in statutory minimum wage.
Gross profit declined 35.4% to HK$30.7 million (US$4 million) from HK$47.6 million, with gross margin contracting from 26.1% to 16%.
The margin erosion stemmed from lower profitability in engineering projects due to increased subcontracting, reduced equipment leasing margins from competitive contract renewals, and compressed guarding margins from rising labor costs.