Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Sep. 30, 2023 | Jan. 29, 2024 | |
Document Information Line Items | ||
Entity Registrant Name | SU Group Holdings Limited | |
Trading Symbol | SUGP | |
Document Type | 20-F | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 13,250,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0001969863 | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-41927 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | Unit 01 – 03, 3/F, Billion Trade Centre | |
Entity Address, Address Line Two | 31 Hung To Road, Kwun Tong | |
Entity Address, City or Town | Kowloon | |
Entity Address, Country | HK | |
Title of 12(b) Security | Ordinary shares, par value HK$0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
Document Financial Statement Error Correction [Flag] | false | |
Auditor Firm ID | 5395 | |
Auditor Name | Marcum Asia CPAs LLP | |
Auditor Location | New York | |
Entity Address, Postal Zip Code | 000000 | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | Unit 01 – 03, 3/F, Billion Trade Centre | |
Entity Address, Address Line Two | 31 Hung To Road, Kwun Tong | |
Entity Address, City or Town | Kowloon | |
Entity Address, Country | HK | |
Contact Personnel Name | Chan Ming Dave | |
City Area Code | +852 | |
Local Phone Number | 2341-8183 | |
Entity Address, Postal Zip Code | 000000 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | |
Current assets | ||||
Cash and cash equivalents | $ 16,400,123 | $ 2,094,711 | $ 25,185,630 | |
Trade receivables, net | 34,978,153 | 4,467,596 | 23,696,180 | |
Inventories | 40,919,214 | 5,226,420 | 22,692,161 | |
Prepaid expenses and other current assets | 1,590,259 | 203,116 | 973,791 | |
Contract assets, net | 3,187,403 | 407,112 | 4,653,025 | |
Amounts due from related parties | 22,810 | |||
Total current assets | 97,075,152 | 12,398,955 | 77,223,597 | |
Non-current assets | ||||
Property and equipment, net | 8,405,563 | 1,073,603 | 10,723,617 | |
Intangible assets, net | 144,879 | 18,505 | 229,880 | |
Goodwill | 1,271,160 | 162,359 | 1,271,160 | |
Deferred offering expenses | 3,853,500 | 492,190 | 1,571,254 | |
Operating lease right-of-use assets, net | 1,113,926 | 142,277 | 1,449,859 | |
Investment in key management insurance policy | 1,157,520 | 147,845 | 1,065,480 | |
Deferred tax assets | 1,418,419 | 181,168 | 1,242 | |
Total non-current assets | 17,364,967 | 2,217,947 | 16,312,492 | |
TOTAL ASSETS | 114,440,119 | 14,616,902 | 93,536,089 | |
Current liabilities | ||||
Trade payables | 16,104,581 | 2,056,963 | 3,174,806 | |
Notes payables | 3,503,768 | 447,520 | 2,931,934 | |
Other payables | 2,633,447 | 336,358 | 2,365,624 | |
Accrued payroll and welfare | 8,228,964 | 1,051,047 | 8,797,841 | |
Operating lease liabilities – current | 204,156 | 26,076 | 541,118 | |
Income tax payable | 1,058,040 | 135,139 | 2,446,138 | |
Contract liabilities | 22,748,443 | 2,905,553 | 27,225,278 | |
Total current liabilities | 54,481,399 | 6,958,656 | 47,678,697 | |
Non-current liabilities | ||||
Operating lease liabilities – non-current | 61,229 | 7,820 | 38,000 | |
Other payables – non-current | 996,069 | 127,223 | 1,433,190 | |
Deferred tax liabilities | 1,468,575 | 187,574 | 1,768,737 | |
Other liabilities | 1,008,306 | 128,786 | 956,388 | |
Total non-current liabilities | 3,534,179 | 451,403 | 4,196,315 | |
Total liabilities | 58,015,578 | 7,410,059 | 51,875,012 | |
Commitments and contingencies | ||||
Shareholders’ Equity | ||||
Ordinary shares (par value of HK$0.01 per share; 750,000,000 ordinary shares authorized and 12,000,000 and 12,000,000 ordinary shares issued and outstanding as of September 30, 2022 and 2023, respectively.) | [1] | 120,000 | 15,327 | 120,000 |
Shares subscription receivables | [1] | (119,990) | (15,326) | (119,990) |
Additional paid-in capital | 14,642,029 | 1,870,158 | 8,000,000 | |
Retained earnings | 41,782,502 | 5,336,684 | 32,085,133 | |
Total SU Group Holdings Limited shareholders’ equity | 56,424,541 | 7,206,843 | 40,085,143 | |
Non-controlling interests | 1,575,934 | |||
Total shareholders’ equity | 56,424,541 | 7,206,843 | 41,661,077 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 114,440,119 | 14,616,902 | 93,536,089 | |
Related Parties | ||||
Current assets | ||||
Amounts due from related parties | 22,810 | |||
Current liabilities | ||||
Amount due to a related party | $ 195,958 | |||
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Financial Position [Abstract] | |||
Ordinary shares, par value (in Dollars per share and Dollars per share) | [1] | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | [1] | 750,000,000 | 750,000,000 |
Ordinary shares, shares issued | [1] | 12,000,000 | 12,000,000 |
Ordinary shares, shares outstanding | [1] | 12,000,000 | 12,000,000 |
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Consolidated Statements of Inco
Consolidated Statements of Income | 12 Months Ended | |||||||
Sep. 30, 2023 HKD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 HKD ($) $ / shares shares | Sep. 30, 2021 HKD ($) $ / shares shares | |||||
Income Statement [Abstract] | ||||||||
Revenues | $ 163,690,966 | $ 20,907,484 | $ 136,447,442 | $ 117,565,797 | ||||
Cost of revenues | (115,648,013) | (14,771,182) | (97,220,327) | (81,595,840) | ||||
Gross profit | 48,042,953 | 6,136,302 | 39,227,115 | 35,969,957 | ||||
Operating expenses | ||||||||
Selling, general and administrative expenses | (36,805,428) | (4,700,985) | (30,539,155) | (31,759,057) | ||||
Gains (losses) on disposal of property and equipment | (485,957) | (62,069) | (1,862,704) | 3,932,639 | ||||
Income from operations | 10,751,568 | 1,373,248 | 6,825,256 | 8,143,539 | ||||
Other income (expenses) | ||||||||
Other income | 1,445,506 | 184,628 | 3,576,366 | 1,207,336 | ||||
Finance expenses | (55,080) | (7,035) | (82,843) | (244,202) | ||||
Other expenses | (96,028) | |||||||
Total other income, net | 1,390,426 | 177,593 | 3,397,495 | 963,134 | ||||
Income before income tax expenses | 12,141,994 | 1,550,841 | 10,222,751 | 9,106,673 | ||||
Income tax expenses | (2,338,850) | (298,730) | (1,972,577) | (3,084,527) | ||||
Net income | 9,803,144 | 1,252,111 | 8,250,174 | 6,022,146 | ||||
Less: Net income attributable to non-controlling interests | (105,775) | (13,510) | (487,497) | (222,970) | ||||
Net income attributable to SU Group Holdings Limited’s ordinary shareholders | $ 9,697,369 | $ 1,238,601 | $ 7,762,677 | $ 5,799,176 | ||||
Net income per share | ||||||||
Net income per share Basic (in Dollars per share and Dollars per share) | (per share) | $ 0.81 | $ 0.1 | [1] | $ 0.65 | [1] | $ 0.48 | [1] | |
Weighted average number of shares | ||||||||
Weighted average number of shares Basic (in Shares) | [1] | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |||
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Consolidated Statements of In_2
Consolidated Statements of Income (Parentheticals) | 12 Months Ended | ||||
Sep. 30, 2023 $ / shares shares | Sep. 30, 2023 $ / shares shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | ||
Income Statement [Abstract] | |||||
Diluted (in Dollars per share and Dollars per share) | (per share) | [1] | $ 0.81 | $ 0.10 | $ 0.65 | $ 0.48 |
Diluted | [1] | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 |
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | Ordinary shares HKD ($) shares | Ordinary shares USD ($) shares | Shares subscription receivables HKD ($) | [1] | Shares subscription receivables USD ($) | [1] | Additional paid-in capital HKD ($) | Additional paid-in capital USD ($) | Retained earnings HKD ($) | Retained earnings USD ($) | Total SU Group Holdings Limited shareholders’ equity HKD ($) | Total SU Group Holdings Limited shareholders’ equity USD ($) | Non- controlling interest HKD ($) | Non- controlling interest USD ($) | HKD ($) | USD ($) | |||
Balance as of September 30, 2023 (US$) (in Dollars) | $ 119,999 | [1] | $ (119,990) | $ 43,473,280 | $ 43,473,289 | $ 955,867 | $ 44,429,156 | ||||||||||||
Balance at Sep. 30, 2020 | $ 119,999 | [1] | (119,990) | 43,473,280 | 43,473,289 | 955,867 | 44,429,156 | ||||||||||||
Balance (in Shares) at Sep. 30, 2020 | shares | [1] | 11,999,950 | 11,999,950 | ||||||||||||||||
Net income | [1] | 5,799,176 | 5,799,176 | 222,970 | 6,022,146 | ||||||||||||||
Ordinary shares issued | $ 1 | [1] | 8,000,000 | 8,000,001 | 8,000,001 | ||||||||||||||
Ordinary shares issued (in Shares) | shares | [1] | 50 | 50 | ||||||||||||||||
Dividend distribution | [1] | (16,950,000) | (16,950,000) | (50,000) | (17,000,000) | ||||||||||||||
Balance at Sep. 30, 2021 | $ 120,000 | [1] | (119,990) | 8,000,000 | 32,322,456 | 40,322,466 | 1,128,837 | 41,451,303 | |||||||||||
Balance (in Shares) at Sep. 30, 2021 | shares | [1] | 12,000,000 | 12,000,000 | ||||||||||||||||
Balance as of September 30, 2023 (US$) (in Dollars) | $ 120,000 | [1] | (119,990) | 8,000,000 | 32,322,456 | 40,322,466 | 1,128,837 | 41,451,303 | |||||||||||
Net income | [1] | 7,762,677 | 7,762,677 | 487,497 | 8,250,174 | ||||||||||||||
Dividend distribution | [1] | (8,000,000) | (8,000,000) | (40,400) | (8,040,400) | ||||||||||||||
Balance at Sep. 30, 2022 | $ 120,000 | [1] | (119,990) | 8,000,000 | 32,085,133 | 40,085,143 | 1,575,934 | 41,661,077 | |||||||||||
Balance (in Shares) at Sep. 30, 2022 | shares | [1] | 12,000,000 | 12,000,000 | ||||||||||||||||
Balance as of September 30, 2023 (US$) (in Dollars) | $ 120,000 | [1] | (119,990) | 8,000,000 | 32,085,133 | 40,085,143 | 1,575,934 | 41,661,077 | |||||||||||
Net income | [1] | 9,697,369 | 9,697,369 | 105,775 | 9,803,144 | $ 1,252,111 | |||||||||||||
Capital contribution | [1] | 4,961,320 | 4,961,320 | 4,961,320 | |||||||||||||||
Transfer upon acquisition of non-controlling interests | [1] | 1,680,709 | 1,680,709 | (1,681,709) | (1,000) | ||||||||||||||
Balance at Sep. 30, 2023 | $ 120,000 | [1] | $ 15,327 | [1] | (119,990) | $ (15,326) | 14,642,029 | $ 1,870,158 | 41,782,502 | $ 5,322,508 | 56,424,541 | $ 7,206,843 | 56,424,541 | 7,206,843 | |||||
Balance (in Shares) at Sep. 30, 2023 | shares | [1] | 12,000,000 | 12,000,000 | ||||||||||||||||
Balance as of September 30, 2023 (US$) (in Dollars) | $ 120,000 | [1] | $ 15,327 | [1] | $ (119,990) | $ (15,326) | $ 14,642,029 | $ 1,870,158 | $ 41,782,502 | $ 5,322,508 | $ 56,424,541 | $ 7,206,843 | $ 56,424,541 | $ 7,206,843 | |||||
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Cash flows from operating activities: | ||||
Net income | $ 9,803,144 | $ 1,252,111 | $ 8,250,174 | $ 6,022,146 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Change in fair value of investment in key management insurance policy | (44,108) | (5,634) | (37,868) | (36,315) |
Depreciation of property and equipment | 1,943,260 | 248,204 | 2,253,593 | 2,775,397 |
Amortization of intangible assets | 85,001 | 10,857 | 82,583 | 56,000 |
Amortization of operating lease right-of-use assets | 666,459 | 85,124 | 1,267,957 | 1,287,745 |
Provision for allowance for doubtful accounts | 8,610,248 | 1,099,747 | 30,000 | 3,000 |
Deferred tax | (1,717,339) | (219,348) | (420,058) | (1,119,374) |
(Gains) Losses on disposal of property and equipment | 485,957 | 62,069 | 1,862,704 | (3,932,639) |
Foreign exchange losses (gains) - unrealized | (205,446) | (26,242) | (28,928) | 45,827 |
Changes in operating assets and liabilities | ||||
Inventories | (18,227,053) | (2,328,057) | (4,742,789) | (3,473,527) |
Trade receivables | (19,585,181) | (2,501,524) | 6,649,916 | (952,674) |
Prepaid expenses and other current assets | (2,946,647) | (376,361) | (1,865,178) | (22,138) |
Contract assets | 1,158,583 | 147,980 | (2,426,773) | (2,184,252) |
Trade and notes payables | 13,628,513 | 1,740,706 | (1,368,207) | (1,681,673) |
Other payables, accrued payroll and welfare | (738,175) | (94,284) | 617,874 | 4,469,013 |
Contract liabilities | (4,476,835) | (571,805) | (2,843,375) | 14,840,609 |
Operating lease liabilities | (644,259) | (82,288) | (1,245,757) | (1,265,545) |
Other liabilities | 51,918 | 6,631 | 69,674 | 140,235 |
Income tax payable | (1,388,098) | (177,295) | (1,651,629) | 3,611,330 |
Net cash provided by (used in) operating activities | (13,540,058) | (1,729,409) | 4,453,913 | 18,583,165 |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (775,120) | (99,002) | (2,153,000) | (2,890,250) |
Proceeds from disposal of property and equipment | 663,957 | 84,804 | 48,000 | 17,760,116 |
Purchases of intangible assets | (145,000) | |||
Acquisition of non-controlling interests | (1,000) | (128) | ||
Net cash provided by (used in) investing activities | (112,163) | (14,326) | (2,250,000) | 14,869,866 |
Cash flows from financing activities: | ||||
Repayments of long-term bank loans | (4,901,968) | |||
Dividend payment | (8,040,400) | (17,000,000) | ||
Proceeds from capital contribution | 4,961,320 | 633,686 | 8,000,000 | |
Proceeds from issuance of shares upon incorporation | 10 | |||
Payments to related parties | (2,538,411) | (324,219) | (256,389) | (2,907,975) |
Repayments by related parties | 2,365,263 | 302,104 | 225,029 | 257,740 |
Net cash (used in) provided by financing activities | 4,788,172 | 611,571 | (8,071,760) | (16,552,193) |
Effect of exchange rate changes | 78,542 | 10,032 | (27,496) | (20,302) |
Net increase (decrease) in cash and cash equivalents | (8,785,507) | (1,122,132) | (5,895,343) | 16,880,536 |
Cash and cash equivalents at beginning of the year | 25,185,630 | 3,216,843 | 31,080,973 | 14,200,437 |
Cash and cash equivalents at end of the year | 16,400,123 | 2,094,711 | 25,185,630 | 31,080,973 |
Supplemental disclosure of cash flow information: | ||||
Interest expense paid | 38,340 | 4,897 | 43,600 | 195,748 |
Income tax paid | 5,444,287 | 695,373 | 4,044,264 | 592,571 |
Supplemental disclosure of non-cash investing and financing information: | ||||
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 330,526 | 42,217 | 878,321 | 820,002 |
Modification of lease on operating lease right-of-use assets and operating lease liabilities | 239,305 | |||
Extinguishment of operating lease right-of-use assets and operating lease liabilities due to termination of lease | 83,620 | |||
Non-cash consideration paid for purchase of property and equipment | $ 185,134 | $ 23,646 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1. ORGANIZATION AND PRINCIPAL ACTIVITIES SU Group Holdings Limited (the “Company”) and its subsidiaries (collectively referred to as the “Group”) are principally engaged in the provision of security-related engineering services, and security guarding and screening services in Hong Kong Special Administrative Region (“Hong Kong”) of the People’s Republic of China. The Company was incorporated under the law of Cayman Islands as an exempted company with limited liability on March 11, 2021. The registered office of the Company is Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands. SU Group Investment Limited (“SU Investment”), which is 100% owned by the Company, was incorporated in British Virgin Islands (the “BVI”) on November 21, 2019. It is an investment holding company with no operations. Shine Union Limited (“Shine Union”), which was incorporated on January 2, 1998 in Hong Kong, has been 100% owned by SU Investment since December 11, 2019. It is engaged in providing security-related engineering services. Fortune Jet Management & Training Co. Limited (“Fortune Jet”), which was incorporated on February 13, 2015 in Hong Kong, has been 90% owned by SU Investment since December 9, 2019. It is engaged in providing security guarding and screening services. On March 1, 2023, the non-controlling shareholder of Fortune Jet transferred its 10.0% equity interest in Fortune Jet to SU Investment at a consideration of HK$1,000. After the transfer, Fortune Jet is 100% owned by SU Investment. Reorganization In anticipation of an initial public offering (“IPO”) of its equity securities, the Company undertook a reorganization (the “Reorganization”). Since December 2019, SU Investment became the holding company of Shine Union and Fortune Jet. Effective on April 16, 2021, upon the transfer of all equity ownership of SU Investment to the Company, it became the ultimate holding company of SU Investment, Shine Union and Fortune Jet, which were all controlled by the same shareholder before and after the Reorganization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Results of operations for the periods presented comprise those of the previously separate entities combined from the beginning of the period to the end of the period, eliminating the effects of intra-entity transactions. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principal of consolidation The consolidated financial statements include the financial statements of the Company and all the subsidiaries of the Company. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. Non-controlling interests represent the portion of the net assets of a subsidiary attributable to interests that are not entitled by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented in the consolidated statements of income as an allocation of the total profit or loss for the year between non-controlling shareholders and the shareholders of the Company. (c) Foreign currency translation and transactions The Company uses Hong Kong dollars (“HK$”) as its reporting currency. The functional currency of the Company and its subsidiaries is HK$, based on the criteria of Accounting Standards codification (“ASC”) Topic 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at end of the reporting period. The resulting exchange differences are recorded in the consolidated statements of income. The equity denominated in currency other than the functional currency is translated at the historical rate of exchange at the time of capital contribution. No foreign currency translation adjustments were made for the years ended September 30, 2021, 2022, and 2023. (d) Convenience translation The consolidated financial statements as of and for the year ended September 30, 2023 have been translated into U.S. dollars (“US$”) solely for the convenience of the readers. The translation has been made at the rate of US$1.00 = HK$7.8293, representing the close rate on September 30, 2023 as set forth in the statistical release of Yahoo.com. No representation is made that the HK$ amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rates. (e) Use of estimates and assumptions The preparation of the consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts related to trade receivables, allowance for inventories, the useful lives of property and equipment, impairment assessment for goodwill and long-lived assets, the discount rates for leases and the impairment assessment, revenue recognition, deferred tax, and uncertain tax positions. The use of estimates is an integral component of the financial reporting process. Actual results could differ from those estimates. (f) Fair values of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure the fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and exchange rates. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, trade receivables, deposits and other receivables included in prepaid expenses and other current assets, amounts due from related parties, investment in key management insurance policy, trade payables, notes payables, other payables, amount due to a related party, and other liabilities. The carrying amounts of cash and cash equivalents, trade receivables, deposits and other receivables included in prepaid expenses and other current assets, amounts due from related parties, trade payables, notes payables, other payables, amount due to a related party, and other liabilities approximate their fair values due to the short-term maturities. Investment in key management insurance policy is measured at fair value using unobservable inputs which is positively correlated to the surrender cash value and categorized in Level 3 of the fair value hierarchy. (g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (h) Trade receivables, net Trade receivables, net are stated at the original amount less an allowance for doubtful accounts. Trade receivables are recognized in the period when the Group has delivered goods or rendered services to its customers and when the right to consideration is unconditional. The amounts due are stated at their net estimated realizable value. The credit terms are generally between 0 to 90 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. (i) Inventories Inventories consist of spare parts and other materials and work-in-progress. Spare parts and other materials primarily comprise of components and parts for the security systems. Work-in-progress primarily comprises of certain costs incurred for installation of security systems that will be sold to customers, which are partially installed and have yet to meet the criteria for revenue recognition. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the moving weighted average method and in the case of work-in-progress, comprises raw materials and other direct costs. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to disposal. Where there is evidence that the utility of inventories, in their disposal in the ordinary course of business, will be less than their costs, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to net realizable value. Write-down of inventories of nil nil (j) Prepaid expenses and other current assets Prepaid expenses and other current assets are mainly prepaid insurance, deposits for utilities and items in daily operations, and employee advances. These amounts are refundable and bear no interest. Management reviews its prepaid expenses and other current assets on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Management continues to evaluate the reasonableness of the allowance policy and update it if necessary. (k) Related party A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with an entity; b) a principal owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent company and its subsidiaries; and f) other parties that have ability to significantly influence the management or operating policies of the entity. The Group discloses all significant related party transactions. (l) Property and equipment, net Property and equipment, net is stated at historical cost less accumulated depreciation and impairment, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Depreciation is calculated using the straight-line method to allocate their costs to their residual values over their estimated useful lives, as follows: Items Useful life Building 25 years Leasehold improvements Shorter of the lease terms or the estimated useful lives Motor vehicles 4 years Furniture, fixtures and equipment 5 years Equipment for leasing 8 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income. Expenditures for maintenance and repairs are charged to consolidated statements of income as incurred, while additions, renewals and betterments, which are expected to extend the useful lives of assets, are capitalized. The Group also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. (m) Intangible assets, net Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets are carried at cost less accumulated amortization and impairment if any. The finite-lived intangible assets are amortized over their estimated useful lives, which are the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Group. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Group may rely on a qualitative assessment when performing impairment test for its intangible assets. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Group’s intangible assets mainly represented computer software. Computer software is classified as finite-lived intangible assets and amortized over its useful life of 5 (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, or more often when circumstances indicate that impairment may have occurred. Goodwill is carried at cost less accumulated impairment. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of income. Impairment losses on goodwill are not reversed. The Group reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Group has the opinion to assess qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC Topic 350, Intangibles — Goodwill and Other. If the Group believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of the reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being discounted cash flows. No impairment of goodwill was made for the years ended September 30, 2021, 2022, and 2023. (o) Deferred offering expenses The Group capitalizes certain underwriting, legal, professional, and other third-party fees that are directly related to the IPO, as deferred offering expenses until such IPO is consummated. Upon consummation of the IPO, these fees will be recorded in the stockholders’ equity as a reduction of additional paid-in capital generated from the offering. In the event the offering is aborted, deferred offering costs will be expensed. The Group recorded HK$1,571,254 and HK$3,853,500 as deferred offering expenses under non-current assets in the consolidated balance sheets as of September 30, 2022 and 2023, respectively. (p) Investment in key management insurance policy The Group invests in a key management insurance policy which is a life insurance policy. The key management insurance policy is initially recognized at the amount of premium paid, and subsequently measured at end of each reporting period at the cash surrender value that could be realized under the insurance policy, which is primarily based on the guaranteed cash value stated on the annual statement from the insurance company. Changes to the cash surrender value at end of each reporting period will be recognized in other income or other expenses in the consolidated statements of income. Any gain or loss on the derecognition of the investment in the event of death of the insured person, the surrender of the policy, or upon the maturity of the policy, will be recognized in other income or other expenses in the consolidated statements of income. (q) Impairment for long-lived assets Long-lived assets such as property and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than that the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived asset by comparing the carrying value of the asset to an estimate of future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the asset, the Group recognizes an impairment loss based on the excess of the carrying value of the asset over the fair value of the asset. No impairment of long-lived assets was recognized for the years ended September 30, 2021, 2022, and 2023. (r) Notes payables Notes payables represent outstanding bills with bank, mainly consist of outstanding letter of credit, import bills acceptance, and trust receipt. Notes payables are non-interest bearing and generally mature within six months. (s) Commitments and contingencies In the normal course of business, the Group is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Group recognizes a liability for such contingency if it determines that it is probable that a loss will occur and a reasonable estimate of the loss can be made. The Group may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter. (t) Revenue recognition The Group recognized its revenue under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle underlying the revenue recognition of this Accounting Standards Update (“ASU”) allows the Group to recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Group expects to be entitled in such exchange. This will require the Group to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Group applies five-step model to recognize revenue from customer contracts. The five-step model requires the Group to (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur; (iv) allocate the transaction price to the respective performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies the performance obligation. The Group accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance, and consideration is probable of substantially collection. The Group derives its revenues principally from providing security-related engineering services, and security guarding and screening services. Revenue recognition policies for each type of revenue stream are as follows: Security-related engineering services The Group offers security-related engineering services to customers, and signs project contracts with them. The contracts typically comprise one or multiple arrangements, such as: i) supplies of security systems and products, provision of installation, and related maintenance services; ii) supplies of security systems and products only; or iii) maintenance services only. The Group determines whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the Group’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Group has identified that the supply of security systems and products with the installation services are a combined performance obligation, as they are interdependent and interrelated services as one promise to the customer. The Group also determines that the related maintenance services are distinct and represent a separate performance obligation. The transaction price of a contract containing multiple performance obligations is allocated to the separate performance obligations on a relative standalone selling price basis, which is determined using observable inputs, such as standalone sales of the maintenance services and historical contract pricing. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Group recognizes revenues when (or as) it satisfies the performance obligation by transferring a promised product and/or service to a customer. Revenues from supplying security systems and products and installation services are recognized at a point in time when the legal title and control of the products and services has been transferred, being when the products are delivered and services are rendered, and accepted by the customer, there is no unfulfilled obligation that could affect the customers’ acceptance of the products and services, and it is highly probable that a significant reversal will not occur. The Group recognizes revenue from the maintenance services ratably over the term of the arrangement, because the customer simultaneously receives and consumes the benefits provided by the Group. In addition, the Group provides equipment leasing to the customers with use of dedicated security-related systems and equipment for contractual periods. The Group assesses the equipment leasing arrangements under ASC Topic 842, Leases (“ASC 842”). Revenues are recognized on a straight-line basis over the lease period, usually 2 to 3 years. Customers related to security-related engineering services generally make the payment monthly or quarterly, in accordance with the contract terms, except for the payment related to the supply of security systems and products which is payable upon customer’s acceptance. Security guarding and screening services The Group enters into contracts with customers to provide security guarding services, by dispatching security guards with corresponding abilities and qualifications on demand, to fulfill the customers’ needs such as securing and guarding physical properties by, among other things, conducting patrols, entrance guarding, access control and alarm monitoring and response such as fire and gas detection, burglary detection and emergency management such as first aid service and communication and evacuation. The Group also offers security guarding services targeted at crowd coordination and management. The Group also enters into contracts with customers to provide security screening services, by dispatching certified screeners to the premises of the customers. The Group’s screening services include the detection of explosives, incendiary devices in air cargo consignment and detection of dangerous goods for safety purpose through the operation of threat detection system by the screeners. The Group identifies one performance obligation in security guarding and screening services as the contract comprises of a series of distinct services that are substantially the same and have the same pattern of transfer to the customers, which is to provide security guards and screeners in accordance with the demand orders. Since the customer simultaneously receives and consumes the benefits as the dispatched security guards and screeners perform the services, revenue from security guarding and screening services is recognized over the contractual term, starting from the date that the Group’s services are made available to the customers. The contracts have a transaction price that includes a fixed consideration and a variable consideration that is charged based on ad-hoc overtime work demanded, less any deduction due to absence. The considerations are reconciled with customers monthly before billing. For variable considerations, the Group uses the practical expedient that allows it to recognize revenue in the amount to which the Group has a right to invoice. In addition to the abovementioned security guarding and screening services, the Group also offers various types of related vocational training courses. The fees are usually billed and paid in advance before commencement of the training. Revenues are recognized at the course fees over time during the training course period, usually within several days. The following table disaggregates the Group’s revenue for the years ended September 30, 2021, 2022, and 2023: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ By revenue type Security-related engineering services Security systems and products and installation 59,089,502 57,829,366 77,272,367 Security systems maintenance services 9,840,023 10,698,776 14,672,998 Equipment leasing 12,617,616 8,716,360 6,176,271 81,547,141 77,244,502 98,121,636 Security guarding and screening services Security guarding services 15,822,222 38,615,289 51,059,864 Screening services 15,267,528 16,755,336 10,465,751 Related vocational training services 4,928,906 3,832,315 4,043,715 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 By timing of revenue recognition Security-related engineering services Goods and services transferred at a point in time 48,088,609 44,353,052 73,343,945 Services rendered over time 33,458,532 32,891,450 24,777,691 81,547,141 77,244,502 98,121,636 Security guarding and screening services Goods and services transferred at a point in time — — — Services rendered over time 36,018,656 59,202,940 65,569,330 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 Contract balances Timing of revenue recognition may differ from the timing of invoicing to the customers. Trade receivables represent amounts invoiced when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract assets are primarily unbilled trade receivables that are conditional on something other than the passage of time, and the Group reviews the contract assets for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. As of September 30, 2022 and 2023, contracts assets amounted to HK$4,653,025 and HK$3,494,443, respectively. HK$0.7 million, or 20.7%, of the contract assets as of September 30, 2023 have been subsequently realized as of the date of this report, and the remaining balance is expected to be utilized within 1 year from September 30, 2023. Provision was made for doubtful accounts of contract assets for the years ended September 30, 2021, 2022, and 2023 were nil nil If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers the promised goods or services to the customer, the Group presents the amount as a contract liability when the payment is received or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer the promised goods to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract liabilities were HK$27,225,278 and HK$22,748,443 as of September 30, 2022 and 2023, respectively. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Revenue recognized during the years ended September 30, 2022 and 2023, respectively, relating to contract liabilities as of October 1, 2021 and 2022 was HK$19,344,394 and HK$20,609,753, respectively. (u) Cost of revenues Cost of revenues mainly consists of cost of goods sold, employee benefit expense of direct labor, depreciation, subcontracting fee, transportation fee, travelling expenses, freight charge, course expenses, sample, uniform, insurance for direct labor, and provision for obsolete inventories. (v) Selling, general and administrative expenses Selling, general and administrative expenses mainly represented employee benefit expense of sales and administrative staff, rental, depreciation, professional service fees, research and development expenses, and other corporate expenses. Research and development expenses relating to improving development efficiency and quality of the Group’s products and services are expensed as incurred. The Group recognized research and development expenses of HK$17,200, HK$200,028, and nil (w) Employee benefits Employee benefits include employees’ leave entitlements, bonus entitlements, and pension obligations, other than those expenses arising from basic salaries as a result of services rendered by the Group’s employees. Employees’ entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by the employees up to the end of the reporting period. Employee entitlements to sick leave and maternity or paternity leave are not recognized until the time of leave. Bonus entitlements are recognized as a liability at its expected cost when the Group has a present legal or constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be made. Liabilities for bonus are expected to be settled within twelve months and are measured at the amounts expected to be paid when they are settled. Regarding pension obligations, the Group participates in defined contribution retirement benefit plans which are available to all relevant employees in Hong Kong. These plans are generally funded through payments to schemes established by publicly or privately administered funds. A defined contribution plan is a pension plan under which the Group pays contributions on mandatory, contractual or voluntary basis into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee services in the current period. The Group’s contributions to the defined contribution plans are expensed. (x) Leases The Group adopted ASC 842 effective October 1, 2020. Classification for leases under which the Group is a lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Group at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated |
Trade Receivables, Net
Trade Receivables, Net | 12 Months Ended |
Sep. 30, 2023 | |
Trade Receivables, Net [Abstract] | |
TRADE RECEIVABLES, NET | NOTE 3. TRADE RECEIVABLES, NET Trade receivables, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Trade receivables 23,740,180 43,325,361 Less: allowance for doubtful accounts (44,000 ) (8,347,208 ) 23,696,180 34,978,153 The Group recorded provision for allowance for doubtful accounts of trade receivables of HK$3,000, HK$30,000, and HK$8,303,208 for the years ended September 30, 2021, 2022, and 2023, respectively. Movement of provision for allowance for doubtful accounts of trade receivables is as follows: For the Years Ended 2022 2023 HK$ HK$ Balance at beginning of the year 14,000 44,000 Provision for the year 30,000 8,303,208 Balance at end of the year 44,000 8,347,208 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstarct] | |
INVENTORIES | NOTE 4. INVENTORIES Inventories consisted of the following: As of September 30, 2022 2023 HK$ HK$ Spare parts and other materials 3,803,085 3,569,211 Work-in-progress 18,889,076 37,350,003 22,692,161 40,919,214 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Assets [Abstarct] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of September 30, 2022 2023 HK$ HK$ Prepaid expenses 238,659 679,882 Advances to staff (A) 106,523 84,611 Deposits (B) 628,609 673,864 Others — 151,902 973,791 1,590,259 (A) Advances are made to staff for their purchases of miscellaneous consumables in order to perform daily work. (B) Deposits consist of deposits paid to utility service providers such as power and water supplies, landlords of the leased properties and carparking spaces, and management offices of the leased or owned properties. The deposits are refundable upon termination or expiry of corresponding services and rental. No provision was made for doubtful accounts of prepaid expenses and other current assets for the years ended September 30, 2021, 2022, and 2023. |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Sep. 30, 2023 | |
Property And Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Building 565,000 565,000 Leasehold improvements 320,000 320,000 Motor vehicles 1,463,000 1,480,700 Furniture, fixtures and equipment 100,747 100,747 Equipment for leasing 14,491,150 13,156,650 Less: accumulated depreciation (6,216,280 ) (7,217,534 ) Property and equipment, net 10,723,617 8,405,563 Depreciation expenses were HK$2,775,397, HK$2,253,593, and HK$1,943,260 for the years ended September 30, 2021, 2022, and 2023, respectively. No During the years ended September 30, 2021 and 2022, certain customers who leased the equipment under operating lease arrangements decided to terminate the leasing arrangements with the Group. This was mainly triggered by the launch of the Pilot Subsidy Scheme for Third-party Logistics Service Providers on October 12, 2020 with a granting budget of HK$300 million, which subsidizes the procurement of screening equipment including X-ray machines and explosive trace detection equipment adopted under the regulated air cargo screening facilities scheme to encourage the adoption of technology by the logistics sector for enhancing efficiency and productivity. Accordingly, the Group believes that this is a one-time event. No such event occurred during the year ended September 30, 2023. Such activities resulted in the disposal of equipment for leasing, which was classified as in the security-related engineering services, as follows: For the Years Ended September 30, 2021 2022 HK$ HK$ Cost 16,417,750 2,888,150 Accumulated depreciation (2,590,273 ) (1,024,258 ) Carrying amount of the equipment for leasing disposed 13,827,477 1,863,892 Proceeds from disposal 17,760,116 — Gain (loss) on disposal 3,932,639 (1,863,892 ) |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Computer software 425,000 425,000 Less: accumulated amortization (195,120 ) (280,121 ) Intangible assets, net 229,880 144,879 Amortization expenses were HK$56,000, HK$82,583, and HK$85,001 for the years ended September 30, 2021, 2022, and 2023, respectively. Future estimated amortization expenses are disclosed as follows: Twelve months ending September 30, HK$ 2024 84,463 2025 29,000 2026 29,000 2027 2,416 144,879 No impairment loss was made for intangible assets for the years ended September 30, 2021, 2022, and 2023. |
Investment in Key Management In
Investment in Key Management Insurance Policy | 12 Months Ended |
Sep. 30, 2023 | |
Investment in Key Management Insurance Policy [Abstract] | |
Investment in Key Management Insurance Policy | NOTE 8. INVESTMENT IN KEY MANAGEMENT INSURANCE POLICY The Group entered into a key management insurance policy for the founder to secure that the operation of the Group will not be affected by the death and loss of position of the founder. The fair value of the investment in key management insurance policy is determined at end of each reporting period at the cash surrender value that could be realized under the insurance policy, which is primarily based on the guaranteed cash value stated on the annual statement from the insurance company. The fair value measurement of the investment in key management insurance policy has been categorized as Level 3 based on the inputs to the valuation technique used and is positively correlated to the surrender cash value. For the Years Ended 2022 2023 HK$ HK$ Balance at beginning of the year 979,680 1,065,480 Premium paid 47,932 47,932 Change in fair value recognized in the consolidated statements of income 37,868 44,108 Balance at end of the year 1,065,480 1,157,520 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 9. LEASES The Group as lessor The Group acts as a lessor of dedicated security-related systems and equipment, and recorded the income from the leases as revenues in the consolidated statements of income. Equipment leasing income was HK$12,617,616, HK$8,716,360, and HK$6,176,271 for the years ended September 30, 2021, 2022, and 2023, respectively. The leases are classified as operating leases, which have remaining terms of 2 to 26 Assets leased under operating leases are included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. It had a cost of HK$14,491,150 and HK$13,156,650 as of September 30, 2022 and 2023, respectively, and accumulated depreciation associated with these assets was HK$4,405,042 and HK$5,424,149 as of September 30, 2022 and 2023, respectively. Depreciation expense for the years ended September 30, 2021, 2022, and 2023 amounted to HK$2,476,944, HK$1,917,894, and HK$1,750,739, respectively. There were no variable lease conditions or purchase options. The Group as lessee The Group leases land use rights in Hong Kong, and leases training center, offices, workshops, warehouse, and carparking spaces under operating leases with terms ranging from 1 to 2 55 The Group considers those termination options that are reasonably certain not to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Leases with initial term of 12 months or less are short-term leases not recorded on the consolidated balance sheets. Lease expenses for short-term leases are recognized on a straight-line basis over the lease term. The Group’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating leases related assets and liabilities recorded on the consolidated balance sheets: As of September 30, 2022 2023 HK$ HK$ Operating lease ROU assets, net 1,449,859 1,113,926 Operating lease liabilities – current 541,118 204,156 Operating lease liabilities – non-current 38,000 61,229 579,118 265,385 The weighted average remaining lease terms and discount rates for the operating leases were as follows: As of September 30, 2022 2023 Weighted average remaining lease term (years) 23.65 29.47 Weighted average discount rate 3.96 % 3.96 % A summary of lease expenses recognized in the Group’s consolidated statements of income and supplemental cash flow information related to operating leases is as follows: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Amortization of operating lease ROU assets 1,287,745 1,267,957 666,459 Interest of operating lease liabilities 48,455 39,243 16,741 Principal elements of lease payments 1,314,000 1,285,000 661,000 Short-term operating lease expenses 666,585 681,952 1,452,824 Non-cash information: Operating lease ROU assets obtained in exchange for operating lease liabilities 820,002 878,321 330,526 Modification of lease on operating lease ROU assets and operating lease liabilities 239,305 — — Extinguishment of ROU assets and operating lease liabilities due to termination of lease 83,620 — — The following is a schedule, by year, of maturities of operating lease liabilities as of September 30, 2023: Twelve months ended September 30, HK$ 2024 209,600 2025 61,600 Total lease payments 271,200 Less: imputed interest (5,815 ) Present value of operating lease liabilities 265,385 Less: operating lease liabilities – non-current 61,229 Operating lease liabilities – current 204,156 |
Other Payables
Other Payables | 12 Months Ended |
Sep. 30, 2023 | |
Other Payables [Abstract] | |
OTHER PAYABLES | NOTE 10. OTHER PAYABLES Other payables consisted of the following: As of September 30, 2022 2023 HK$ HK$ Rental deposit received – current 1,470,450 1,559,190 Rental deposit received – non-current 1,433,190 996,069 Accrued expenses 339,300 518,257 Listing expenses 540,000 540,000 Others 15,874 16,000 3,798,814 3,629,516 Other payables – current 2,365,624 2,633,447 Other payables – non-current 1,433,190 996,069 3,798,814 3,629,516 |
Accrued Payroll and Welfare
Accrued Payroll and Welfare | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Payroll and Welfare [Abstract] | |
ACCRUED PAYROLL AND WELFARE | NOTE 11. ACCRUED PAYROLL AND WELFARE Accrued payroll and welfare consisted of the following: As of September 30, 2022 2023 HK$ HK$ Accrued paid time leave 662,837 821,358 Employees 7,754,233 7,014,988 Mandatory provident fund 380,771 392,618 8,797,841 8,228,964 |
Banking Facilities
Banking Facilities | 12 Months Ended |
Sep. 30, 2023 | |
Banking Facilities [Abstract] | |
BANKING FACILITIES | NOTE 12. BANKING FACILITIES A subsidiary of the Group entered into a banking facility agreement with CMB Wing Lung Bank Limited, pursuant to which the subsidiary is entitled to trade facilities of HK$20.0 million. The facilities are secured by a property owned by the subsidiary and a property jointly owned by the founder of the Company and his family member, and jointly guaranteed by the founder of the Company and his family member (see Note 20). The trade facilities include letter of credit, trust receipt, invoice financing, and letter of guarantee. As of September 30, 2022 and 2023, the Group had utilized HK$2,931,934 and HK$3,503,768, respectively. The unutilized banking facilities were HK$17,068,066 and HK$16,496,232 as of September 30, 2022 and 2023, respectively. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Sep. 30, 2023 | |
Ordinary Shares [Abstract] | |
ORDINARY SHARES | NOTE 13. ORDINARY SHARES The Company’s authorized share capital is HK$7,500,000 divided into 750,000,000 ordinary shares of par value HK$0.01 each. On March 11, 2021 and April 16, 2021, the Company issued 1 and 949 ordinary shares to its then shareholder, respectively. With the effect of resolutions passed by board of directors on February 27, 2023 and June 20, 2023, 9,000 and 11,990,000 ordinary shares were issued with a par value of HK$0.01, respectively. The issuances were considered as being part of the Reorganization of the Group and was retrospectively applied as if the transaction occurred at beginning of the period presented. On April 29, 2021, the Company entered into a subscription agreement (the “Subscription Agreement”) with its existing shareholder and two investors (together the “Subscribers”). Pursuant to the Subscription Agreement, the Company has allotted and issued 50 shares in aggregate to the Subscribers at a cash consideration of HK$160,000 per ordinary share. A total of HK$8.0 million was received by the Company. Shares subscription receivables Shares subscription receivables represents the receivable for the issuance of ordinary shares of the Company and is reported as a deduction of equity and presented on a retroactive basis. It has no payment terms nor any interest receivable accrual. |
Capital Contributions
Capital Contributions | 12 Months Ended |
Sep. 30, 2023 | |
Capital Contributions [Abstract] | |
CAPITAL CONTRIBUTIONS | NOTE 14. CAPITAL CONTRIBUTIONS During the year ended September 30, 2023, the Company’s shareholder, Chan Ming Dave, made capital contributions of HK$4,961,320 to the Company. |
Dividend Declaration
Dividend Declaration | 12 Months Ended |
Sep. 30, 2023 | |
Dividend Declaration [Abstract] | |
DIVIDEND DECLARATION | NOTE 15. DIVIDEND DECLARATION During the years ended September 30, 2021, 2022, and 2023, the Group declared dividends to its shareholder of HK$17.0 million, HK$8.0 million, and nil |
Income Tax
Income Tax | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax [Abstract] | |
INCOME TAX | NOTE 16. INCOME TAX Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gains. Additionally, upon payments of dividends to the shareholders, no withholding tax will be imposed. British Virgin Islands Under the current laws of the BVI, an entity incorporated in the BVI are not subject to tax on income or capital gains. Hong Kong In accordance with the relevant tax laws and regulations in Hong Kong, a company with trading activities in Hong Kong is subject to Profits Tax within Hong Kong at the applicable tax rate on its assessable profits. In March 2018, the Hong Kong government introduced a two-tiered Profits Tax rate regime by enacting the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the “Ordinance”). Under the two-tiered Profits Tax rate regime, the first HK$2.0 million of assessable profits of qualifying entity is taxed at 8.25% and the remaining assessable profits at 16.5%. The Ordinance is effective from the year of assessment 2018/19. According to the relevant policy, if no election of the qualifying entity has been made, the whole of the taxpaying entity’s assessable profits will be chargeable to the Profits Tax at the rate of 16.5%. The Group had elected Shine Union to have its qualifying profits of HK$2.0 million charged at half rate. Under the current laws of Hong Kong, payments of dividends are not subject to withholding tax. Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of penalties and interests) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of September 30, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. The Group did not incur any penalty or interest related to potential underpaid income tax expenses for the years ended September 30, 2021, 2022, and 2023, and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from September 30, 2023. Income before income tax expenses is attributable to the following geographic locations: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Hong Kong 20,605,424 16,342,125 16,169,924 Foreign (11,498,751 ) (6,119,374 ) (4,027,930 ) Income before income tax expenses 9,106,673 10,222,751 12,141,994 Income tax expenses consisted of the following: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Current income tax expenses 4,203,901 2,392,635 4,056,189 Deferred income tax benefit (1,119,374 ) (420,058 ) (1,717,339 ) 3,084,527 1,972,577 2,338,850 The tax on the Group’s income before income tax expenses differs from the theoretical amount that would arise using the enacted tax rate of the companies comprising the Group can be reconciled as follows: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Income tax expenses calculated at Hong Kong Profits Tax rate 1,502,601 1,686,755 2,003,428 Income not taxable for tax purposes (131,208 ) (563,875 ) (98,101 ) Expenses not deductible for tax purposes* 1,898,134 1,014,697 598,523 Tax concession (20,000 ) — — Effect on tax expenses due to preferential tax rate (165,000 ) (165,000 ) (165,000 ) 3,084,527 1,972,577 2,338,850 * Mainly relate to non-deductible listing expenses. Deferred tax assets and liabilities, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Deferred tax assets: Decelerated tax depreciation of property and equipment 1,242 11,258 Provision for allowance for doubtful accounts — 1,407,161 1,242 1,418,419 Deferred tax liabilities: Accelerated tax depreciation of property and equipment (1,768,737 ) (1,468,575 ) (1,768,737 ) (1,468,575 ) Deferred tax liabilities, net (1,767,495 ) (50,156 ) |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Sep. 30, 2023 | |
Non-Controlling Interests [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 17. NON-CONTROLLING INTERESTS Non-controlling interests consisted of the following: As of September 30, 2022 2023 HK$ HK$ Paid-in capital 743,572 — Unappropriated retained earnings 832,362 — 1,575,934 — During the years ended September 30, 2021 and 2022, Fortune Jet declared dividends of HK$500,000 and HK$404,000, respectively, to its shareholders. Dividends of HK$50,000 and HK$40,400 for the years ended September 30, 2021 and 2022, respectively, represented the amount attributable to the 10% non-controlling interests of Fortune Jet. |
Concentrations
Concentrations | 12 Months Ended |
Sep. 30, 2023 | |
Concentrations [Abstract] | |
CONCENTRATIONS | NOTE 18. CONCENTRATIONS Credit risk As of September 30, 2022 and 2023, HK$25,175,007 and HK$16,389,379 of the Group’s cash was on deposit at financial institutions in Hong Kong, respectively. In accordance with the relevant regulations in Hong Kong, the maximum insured bank deposit amount is HK$500,000 for each financial institution. Accordingly, the Group’s total unprotected cash held in banks amounted to HK$22,884,962 and HK$14,253,318 as of September 30, 2022 and 2023, respectively. Customer concentration risk No customers represented more than 10% of the Group’s revenues for the years ended September 30, 2022 and 2023. One customer represented more than 10% of the Group’s trade receivables, net as of September 30, 2023. No customers represented more than 10% of the Group’s trade receivables, net as of September 30, 2022. Supplier concentration risk For the year ended September 30, 2023, two suppliers represented 15.0% and 13.7% of the Group’s purchases. Three suppliers accounted for 18.3%, 10.6%, and 10.4% of the Group’s trade and notes payables as of September 30, 2023. For the year ended September 30, 2022, one supplier represented 20.2% of the Group’s purchases. One supplier accounted for 54.1% of the Group’s trade and notes payables as of September 30, 2022. For the year ended September 30, 2021, one supplier represented 36.6% of the Group’s purchases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. COMMITMENTS AND CONTINGENCIES Commitments The Group has not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. The Group has not entered into any derivative contracts that are indexed to its shares and classified as shareholder’s equity or that are not reflected in the consolidated financial statements. Furthermore, the Group does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Group does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with the Group. The following table sets forth the Group’s future minimum contractual obligations as of September 30, 2023: Payments due by period Total Within Within HK$ HK$ HK$ Operating lease payment – short-term leases 521,065 521,065 - Operating lease payment – leases with lease term of more than 12 months 271,200 209,600 61,600 Non-cancellable purchase contracts 9,296,574 9,296,574 - Total 10,088,839 10,027,239 61,600 Contingencies Severance Payment and Long Service Payment Employment Ordinance of the Laws of Hong Kong requires employers to assure the liability of severance payment if an employee who has been working for the employer for not less than 24 months under a continuous contract is, due to redundancy, dismissed, laid off, or upon expiry of a fixed-term employment contract. The ordinance also requires employers to assure the liability of long service payment if an employee who has been working for the employer for not less than 5 years under a continuous contract is dismissed, dies, resigns on ground of ill health or on or after 65 years old, or upon expiry of a fixed-term employment contract. As of September 30, 2022 and 2023, the Group estimated its long service payment to be HK$956,388 and HK$1,008,306, respectively. The provision for long service payment as at September 30, 2022 and 2023 have been reflected in the consolidated balance sheets as “other liabilities” under non-current liabilities. No severance payment is provided since the Group has no plan to dismiss any staff due to redundancy, and therefore considers the possibility of meeting the criteria of making severance payment is remote. Legal Contingencies In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of September 30, 2022 and 2023, and through the issuance date of the consolidated financial statements. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions and Balances [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 20. RELATED PARTY TRANSACTIONS AND BALANCES The table below sets forth the major related parties and their relationships with the Group as of September 30, 2022 and 2023: Name Relationship Mr. Chan Ming Dave Founder, ultimate shareholder Ms. Yam Fung Yee Carrie Founder’s family member Exceptional Engineering Limited Shareholder who owned 95% and 70.19% of the equity interest of the Company as of September 30, 2022 and 2023, respectively Amounts due from related parties Amounts due from related parties represented current accounts with related parties, which are used for daily operations, as follows: As of September 30, 2022 2023 HK$ HK$ Exceptional Engineering Limited 15,210 — Ms. Yam Fung Yee Carrie 7,600 — 22,810 — Amount due to a related party Amount due to a related party represented a current account with a related party, which is used for daily operations, as follows: As of September 30, 2022 2023 HK$ HK$ Mr. Chan Ming Dave 195,958 — Leases from related parties The Group has various agreements for the leases of office spaces, workshop, and carparking space owned by the founder and his family member. The terms of the agreements in effect as of September 30, 2023 state that the Group will continue to lease the property at a monthly rent of HK$70,500 with annual rental expense at HK$846,000. The details of leases from related parties in effect as of September 30, 2023 are as below: Rent Period Lessee Lessor From To Monthly HK$ Shine Union Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie April 1, 2023 March 31, 2024 37,500 Shine Union Mr. Chan Ming Dave April 1, 2023 March 31, 2024 13,000 Shine Union Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie April 1, 2023 March 31, 2024 20,000 The lease expenses charged by the above related parties during the years ended September 30, 2022 and 2023 was HK$829,600 and HK$899,970, respectively. As of September 30, 2022 and 2023, no operating lease ROU assets and operating lease liabilities of leases from related parties were recognized on the consolidated balance sheets since all of these leases were short-term leases. Guarantee/collateral provided by related parties Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie provided guarantee for the banking facilities of a subsidiary (see Note 12). Capital contributions During the year ended September 30, 2023, the Company’s shareholder, Chan Ming Dave, made capital contributions of HK$4,961,320 to the Company (see Note 14). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 21. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted EPS for the years ended September 30, 2022 and 2023: As of September 30, 2021 2022 2023 Numerator: Numerator for basic and diluted earnings per share – net income attributable to the SU Group Holdings Limited’s shareholders (in HK$) 5,799,176 7,762,677 9,697,369 Denominator: Denominator for basic and diluted net income per share – weighted average number of shares 12,000,000 12,000,000 12,000,000 Earnings per share – basic and diluted (in HK$) 0.48 0.65 0.81 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 22. SEGMENT REPORTING The CODM reviews financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. As a result of the assessment made by CODM, the Group has two reportable segments for continuing operations, including security-related engineering services business and security guarding and screening services business. The Group’s CODM evaluates performance based on the operating segment’s revenues and their operating results. The following tables present summary information by segment for the years ended September 30, 2021, 2022, and 2023: For the Year Ended September 30, 2023 Security-related Security guarding Total HK$ HK$ HK$ Revenues 98,121,636 65,569,330 163,690,966 Cost of revenues (60,045,961 ) (55,602,052 ) (115,648,013 ) Gross profit 38,075,675 9,967,278 48,042,953 Depreciation and amortization 2,044,635 650,085 2,694,720 Total capital expenditures 1,079,700 330,526 1,410,226 For the Year Ended September 30, 2022 Security-related Security guarding Total HK$ HK$ HK$ Revenues 77,244,502 59,202,940 136,447,442 Cost of revenues (50,395,302 ) (46,825,025 ) (97,220,327 ) Gross profit 26,849,200 12,377,915 39,227,115 Depreciation and amortization 2,584,624 1,019,509 3,604,133 Total capital expenditures 2,034,000 264,000 2,298,000 For the Year Ended September 30, 2021 Security-related Security guarding Total HK$ HK$ HK$ Revenues 81,547,141 36,018,656 117,565,797 Cost of revenues (53,444,991 ) (28,150,849 ) (81,595,840 ) Gross profit 28,102,150 7,867,807 35,969,957 Depreciation and amortization 3,527,373 591,769 4,119,142 Total capital expenditures 2,660,250 230,000 2,890,250 As of September 30, 2022 2023 HK$ HK$ Total assets: Security-related engineering services 70,889,268 88,179,851 Security guarding and screening services 18,895,828 20,227,255 Unallocated assets 3,750,993 6,033,013 93,536,089 114,440,119 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the issuance of the consolidated financial statements and, except for the event described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements. On December 29, 2023, the Securities and Exchange Commission declared effective SU Group’s Registration Statement on Form F-1. On January 26, 2024, the Company consummated the initial public offering of 1,250,000 ordinary shares at a price of US$4.0 per share, generating net proceeds of approximately US$3.0 million after deducting underwriting discounts and commissions and offering expenses. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principal of consolidation | (b) Principal of consolidation The consolidated financial statements include the financial statements of the Company and all the subsidiaries of the Company. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. Non-controlling interests represent the portion of the net assets of a subsidiary attributable to interests that are not entitled by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented in the consolidated statements of income as an allocation of the total profit or loss for the year between non-controlling shareholders and the shareholders of the Company. |
Foreign currency translation and transactions | (c) Foreign currency translation and transactions The Company uses Hong Kong dollars (“HK$”) as its reporting currency. The functional currency of the Company and its subsidiaries is HK$, based on the criteria of Accounting Standards codification (“ASC”) Topic 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at end of the reporting period. The resulting exchange differences are recorded in the consolidated statements of income. The equity denominated in currency other than the functional currency is translated at the historical rate of exchange at the time of capital contribution. No foreign currency translation adjustments were made for the years ended September 30, 2021, 2022, and 2023. |
Convenience translation | (d) Convenience translation The consolidated financial statements as of and for the year ended September 30, 2023 have been translated into U.S. dollars (“US$”) solely for the convenience of the readers. The translation has been made at the rate of US$1.00 = HK$7.8293, representing the close rate on September 30, 2023 as set forth in the statistical release of Yahoo.com. No representation is made that the HK$ amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rates. |
Use of estimates and assumptions | (e) Use of estimates and assumptions The preparation of the consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts related to trade receivables, allowance for inventories, the useful lives of property and equipment, impairment assessment for goodwill and long-lived assets, the discount rates for leases and the impairment assessment, revenue recognition, deferred tax, and uncertain tax positions. The use of estimates is an integral component of the financial reporting process. Actual results could differ from those estimates. |
Fair values of financial instruments | (f) Fair values of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure the fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and exchange rates. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, trade receivables, deposits and other receivables included in prepaid expenses and other current assets, amounts due from related parties, investment in key management insurance policy, trade payables, notes payables, other payables, amount due to a related party, and other liabilities. The carrying amounts of cash and cash equivalents, trade receivables, deposits and other receivables included in prepaid expenses and other current assets, amounts due from related parties, trade payables, notes payables, other payables, amount due to a related party, and other liabilities approximate their fair values due to the short-term maturities. Investment in key management insurance policy is measured at fair value using unobservable inputs which is positively correlated to the surrender cash value and categorized in Level 3 of the fair value hierarchy. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Trade receivables, net | (h) Trade receivables, net Trade receivables, net are stated at the original amount less an allowance for doubtful accounts. Trade receivables are recognized in the period when the Group has delivered goods or rendered services to its customers and when the right to consideration is unconditional. The amounts due are stated at their net estimated realizable value. The credit terms are generally between 0 to 90 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Inventories | (i) Inventories Inventories consist of spare parts and other materials and work-in-progress. Spare parts and other materials primarily comprise of components and parts for the security systems. Work-in-progress primarily comprises of certain costs incurred for installation of security systems that will be sold to customers, which are partially installed and have yet to meet the criteria for revenue recognition. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the moving weighted average method and in the case of work-in-progress, comprises raw materials and other direct costs. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to disposal. Where there is evidence that the utility of inventories, in their disposal in the ordinary course of business, will be less than their costs, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to net realizable value. Write-down of inventories of nil nil |
Prepaid expenses and other current assets | (j) Prepaid expenses and other current assets Prepaid expenses and other current assets are mainly prepaid insurance, deposits for utilities and items in daily operations, and employee advances. These amounts are refundable and bear no interest. Management reviews its prepaid expenses and other current assets on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Management continues to evaluate the reasonableness of the allowance policy and update it if necessary. |
Related party | (k) Related party A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with an entity; b) a principal owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent company and its subsidiaries; and f) other parties that have ability to significantly influence the management or operating policies of the entity. The Group discloses all significant related party transactions. |
Property and equipment, net | (l) Property and equipment, net Property and equipment, net is stated at historical cost less accumulated depreciation and impairment, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Depreciation is calculated using the straight-line method to allocate their costs to their residual values over their estimated useful lives, as follows: Items Useful life Building 25 years Leasehold improvements Shorter of the lease terms or the estimated useful lives Motor vehicles 4 years Furniture, fixtures and equipment 5 years Equipment for leasing 8 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income. Expenditures for maintenance and repairs are charged to consolidated statements of income as incurred, while additions, renewals and betterments, which are expected to extend the useful lives of assets, are capitalized. The Group also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Intangible assets, net | (m) Intangible assets, net Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets are carried at cost less accumulated amortization and impairment if any. The finite-lived intangible assets are amortized over their estimated useful lives, which are the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Group. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Group may rely on a qualitative assessment when performing impairment test for its intangible assets. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Group’s intangible assets mainly represented computer software. Computer software is classified as finite-lived intangible assets and amortized over its useful life of 5 |
Goodwill | (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, or more often when circumstances indicate that impairment may have occurred. Goodwill is carried at cost less accumulated impairment. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of income. Impairment losses on goodwill are not reversed. The Group reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Group has the opinion to assess qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC Topic 350, Intangibles — Goodwill and Other. If the Group believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of the reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being discounted cash flows. No impairment of goodwill was made for the years ended September 30, 2021, 2022, and 2023. |
Deferred offering expenses | (o) Deferred offering expenses The Group capitalizes certain underwriting, legal, professional, and other third-party fees that are directly related to the IPO, as deferred offering expenses until such IPO is consummated. Upon consummation of the IPO, these fees will be recorded in the stockholders’ equity as a reduction of additional paid-in capital generated from the offering. In the event the offering is aborted, deferred offering costs will be expensed. The Group recorded HK$1,571,254 and HK$3,853,500 as deferred offering expenses under non-current assets in the consolidated balance sheets as of September 30, 2022 and 2023, respectively. |
Investment in key management insurance policy | (p) Investment in key management insurance policy The Group invests in a key management insurance policy which is a life insurance policy. The key management insurance policy is initially recognized at the amount of premium paid, and subsequently measured at end of each reporting period at the cash surrender value that could be realized under the insurance policy, which is primarily based on the guaranteed cash value stated on the annual statement from the insurance company. Changes to the cash surrender value at end of each reporting period will be recognized in other income or other expenses in the consolidated statements of income. Any gain or loss on the derecognition of the investment in the event of death of the insured person, the surrender of the policy, or upon the maturity of the policy, will be recognized in other income or other expenses in the consolidated statements of income. |
Impairment for long-lived assets | (q) Impairment for long-lived assets Long-lived assets such as property and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than that the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived asset by comparing the carrying value of the asset to an estimate of future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the asset, the Group recognizes an impairment loss based on the excess of the carrying value of the asset over the fair value of the asset. No impairment of long-lived assets was recognized for the years ended September 30, 2021, 2022, and 2023. |
Notes payables | (r) Notes payables Notes payables represent outstanding bills with bank, mainly consist of outstanding letter of credit, import bills acceptance, and trust receipt. Notes payables are non-interest bearing and generally mature within six months. |
Commitments and contingencies | (s) Commitments and contingencies In the normal course of business, the Group is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Group recognizes a liability for such contingency if it determines that it is probable that a loss will occur and a reasonable estimate of the loss can be made. The Group may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter. |
Revenue recognition | (t) Revenue recognition The Group recognized its revenue under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle underlying the revenue recognition of this Accounting Standards Update (“ASU”) allows the Group to recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Group expects to be entitled in such exchange. This will require the Group to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Group applies five-step model to recognize revenue from customer contracts. The five-step model requires the Group to (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur; (iv) allocate the transaction price to the respective performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies the performance obligation. The Group accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance, and consideration is probable of substantially collection. The Group derives its revenues principally from providing security-related engineering services, and security guarding and screening services. Revenue recognition policies for each type of revenue stream are as follows: Security-related engineering services The Group offers security-related engineering services to customers, and signs project contracts with them. The contracts typically comprise one or multiple arrangements, such as: i) supplies of security systems and products, provision of installation, and related maintenance services; ii) supplies of security systems and products only; or iii) maintenance services only. The Group determines whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the Group’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Group has identified that the supply of security systems and products with the installation services are a combined performance obligation, as they are interdependent and interrelated services as one promise to the customer. The Group also determines that the related maintenance services are distinct and represent a separate performance obligation. The transaction price of a contract containing multiple performance obligations is allocated to the separate performance obligations on a relative standalone selling price basis, which is determined using observable inputs, such as standalone sales of the maintenance services and historical contract pricing. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Group recognizes revenues when (or as) it satisfies the performance obligation by transferring a promised product and/or service to a customer. Revenues from supplying security systems and products and installation services are recognized at a point in time when the legal title and control of the products and services has been transferred, being when the products are delivered and services are rendered, and accepted by the customer, there is no unfulfilled obligation that could affect the customers’ acceptance of the products and services, and it is highly probable that a significant reversal will not occur. The Group recognizes revenue from the maintenance services ratably over the term of the arrangement, because the customer simultaneously receives and consumes the benefits provided by the Group. In addition, the Group provides equipment leasing to the customers with use of dedicated security-related systems and equipment for contractual periods. The Group assesses the equipment leasing arrangements under ASC Topic 842, Leases (“ASC 842”). Revenues are recognized on a straight-line basis over the lease period, usually 2 to 3 years. Customers related to security-related engineering services generally make the payment monthly or quarterly, in accordance with the contract terms, except for the payment related to the supply of security systems and products which is payable upon customer’s acceptance. Security guarding and screening services The Group enters into contracts with customers to provide security guarding services, by dispatching security guards with corresponding abilities and qualifications on demand, to fulfill the customers’ needs such as securing and guarding physical properties by, among other things, conducting patrols, entrance guarding, access control and alarm monitoring and response such as fire and gas detection, burglary detection and emergency management such as first aid service and communication and evacuation. The Group also offers security guarding services targeted at crowd coordination and management. The Group also enters into contracts with customers to provide security screening services, by dispatching certified screeners to the premises of the customers. The Group’s screening services include the detection of explosives, incendiary devices in air cargo consignment and detection of dangerous goods for safety purpose through the operation of threat detection system by the screeners. The Group identifies one performance obligation in security guarding and screening services as the contract comprises of a series of distinct services that are substantially the same and have the same pattern of transfer to the customers, which is to provide security guards and screeners in accordance with the demand orders. Since the customer simultaneously receives and consumes the benefits as the dispatched security guards and screeners perform the services, revenue from security guarding and screening services is recognized over the contractual term, starting from the date that the Group’s services are made available to the customers. The contracts have a transaction price that includes a fixed consideration and a variable consideration that is charged based on ad-hoc overtime work demanded, less any deduction due to absence. The considerations are reconciled with customers monthly before billing. For variable considerations, the Group uses the practical expedient that allows it to recognize revenue in the amount to which the Group has a right to invoice. In addition to the abovementioned security guarding and screening services, the Group also offers various types of related vocational training courses. The fees are usually billed and paid in advance before commencement of the training. Revenues are recognized at the course fees over time during the training course period, usually within several days. The following table disaggregates the Group’s revenue for the years ended September 30, 2021, 2022, and 2023: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ By revenue type Security-related engineering services Security systems and products and installation 59,089,502 57,829,366 77,272,367 Security systems maintenance services 9,840,023 10,698,776 14,672,998 Equipment leasing 12,617,616 8,716,360 6,176,271 81,547,141 77,244,502 98,121,636 Security guarding and screening services Security guarding services 15,822,222 38,615,289 51,059,864 Screening services 15,267,528 16,755,336 10,465,751 Related vocational training services 4,928,906 3,832,315 4,043,715 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 By timing of revenue recognition Security-related engineering services Goods and services transferred at a point in time 48,088,609 44,353,052 73,343,945 Services rendered over time 33,458,532 32,891,450 24,777,691 81,547,141 77,244,502 98,121,636 Security guarding and screening services Goods and services transferred at a point in time — — — Services rendered over time 36,018,656 59,202,940 65,569,330 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 Contract balances Timing of revenue recognition may differ from the timing of invoicing to the customers. Trade receivables represent amounts invoiced when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract assets are primarily unbilled trade receivables that are conditional on something other than the passage of time, and the Group reviews the contract assets for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. As of September 30, 2022 and 2023, contracts assets amounted to HK$4,653,025 and HK$3,494,443, respectively. HK$0.7 million, or 20.7%, of the contract assets as of September 30, 2023 have been subsequently realized as of the date of this report, and the remaining balance is expected to be utilized within 1 year from September 30, 2023. Provision was made for doubtful accounts of contract assets for the years ended September 30, 2021, 2022, and 2023 were nil nil If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers the promised goods or services to the customer, the Group presents the amount as a contract liability when the payment is received or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer the promised goods to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract liabilities were HK$27,225,278 and HK$22,748,443 as of September 30, 2022 and 2023, respectively. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Revenue recognized during the years ended September 30, 2022 and 2023, respectively, relating to contract liabilities as of October 1, 2021 and 2022 was HK$19,344,394 and HK$20,609,753, respectively. |
Cost of revenues | (u) Cost of revenues Cost of revenues mainly consists of cost of goods sold, employee benefit expense of direct labor, depreciation, subcontracting fee, transportation fee, travelling expenses, freight charge, course expenses, sample, uniform, insurance for direct labor, and provision for obsolete inventories. |
Selling, general and administrative expenses | (v) Selling, general and administrative expenses Selling, general and administrative expenses mainly represented employee benefit expense of sales and administrative staff, rental, depreciation, professional service fees, research and development expenses, and other corporate expenses. Research and development expenses relating to improving development efficiency and quality of the Group’s products and services are expensed as incurred. The Group recognized research and development expenses of HK$17,200, HK$200,028, and nil |
Employee benefits | (w) Employee benefits Employee benefits include employees’ leave entitlements, bonus entitlements, and pension obligations, other than those expenses arising from basic salaries as a result of services rendered by the Group’s employees. Employees’ entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by the employees up to the end of the reporting period. Employee entitlements to sick leave and maternity or paternity leave are not recognized until the time of leave. Bonus entitlements are recognized as a liability at its expected cost when the Group has a present legal or constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be made. Liabilities for bonus are expected to be settled within twelve months and are measured at the amounts expected to be paid when they are settled. Regarding pension obligations, the Group participates in defined contribution retirement benefit plans which are available to all relevant employees in Hong Kong. These plans are generally funded through payments to schemes established by publicly or privately administered funds. A defined contribution plan is a pension plan under which the Group pays contributions on mandatory, contractual or voluntary basis into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee services in the current period. The Group’s contributions to the defined contribution plans are expensed. |
Leases | (x) Leases The Group adopted ASC 842 effective October 1, 2020. Classification for leases under which the Group is a lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Group at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable. Classification for leases under which the Group is a lessee is evaluated at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that the Group is reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Group records a lease liability which is measured as the present value of the lease payments and a right-of-use (“ROU”) asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Group applies the rate implicit in the lease, if available, as a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is not known, the Group uses a discount rate reflective of the incremental borrowing rate. In the consolidated statements of income, operating leases are expensed through rent expense while financing leases are expensed through amortization and interest expense. Leases — the Group as lessor The Group’s lease arrangements are all operating leases which typically have a maturity of 2 to 3 years. Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the carrying amount of the leased assets and recognized as an expense in the consolidated statements of income over the lease term on the same basis as equipment leasing income. See Note 2(s) for the accounting policy for revenue from equipment leasing. Leases — the Group as lessee The Group owns leasehold land in Hong Kong and lease training center, office spaces, workshops, warehouse, and carparking spaces, which are classified as operating leases in accordance with ASC 842. Under ASC 842, the Group as a lessee is required to recognize the following for all leases (with the exception of short-term leases, usually with initial term of 12 months or less) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) ROU asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Group recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. No impairment of ROU assets was recognized for the years ended September 30, 2021, 2022, and 2023. The Group elected the practical expedient to account for leases with lease terms which end within 12 months of the initial date of application as short-term leases. The lease payments for short-term leases are recognized on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. |
Income tax | (y) Income tax Income tax comprises current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax is provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. It is calculated using tax rates that have been enacted or substantively enacted at end of the reporting period. Deferred tax is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the profit or loss, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interests incurred related to underpayment of income tax are classified as income tax expense in the period incurred. For the years ended September 30, 2021, 2022, and 2023, the amount of penalties and interests incurred related to underpayment of income tax was nil |
Government grants | (z) Government grants Government grants are recognized at their fair values when there is reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Grants that compensate the Group for expenses incurred are recognized in other income on the consolidated statements of income on a systematic basis in the same periods in which the expenses are recognized. When the grant relates to an asset, the fair value is deducted against the carrying amount of the assets. The Group recognized government grants of HK$1,023,300, HK$3,471,615 and HK$602,379 for the years ended September 30, 2021, 2022, and 2023, respectively. |
Earnings per share | (aa) Earnings per share Earnings per share (“EPS”) is computed by dividing net income by the weighted average number of ordinary shares outstanding. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended September 30, 2021, 2022, and 2023, there were no dilutive shares. |
Segment reporting | (ab) Segment reporting The Group has organized its continuing operations into two operating segments. The segments reflect the way the Group evaluates its business performance and manages its operations by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. |
Recently issued accounting pronouncements | (ac) Recently issued accounting pronouncements In May 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-05, which is an update to ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in ASU 2016-13 added ASC 326, Financial Instruments — Credit Losses, and made several consequential amendments to the ASC. ASU 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments — Credit Losses — Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in ASU 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Group for annual and interim reporting periods beginning January 1, 2023 after FASB delayed the effective date for non-public companies with ASU 2019-10. The Group is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Group is currently evaluating the impact ASU 2020-06 will have on the Group’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, which requires that an entity report segment information in accordance with Topic 280, Segment Reporting. The amendment in the ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the new standard on its consolidated financial statements which is expected to result in enhanced disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this Update are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new standard on its consolidated financial statements which is expected to result in enhanced disclosures. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation is calculated using the straight-line method to allocate their costs to their residual values over their estimated useful lives, as follows: Items Useful life Building 25 years Leasehold improvements Shorter of the lease terms or the estimated useful lives Motor vehicles 4 years Furniture, fixtures and equipment 5 years Equipment for leasing 8 years |
Schedule of Disaggregates the Group’s Revenue | The following table disaggregates the Group’s revenue for the years ended September 30, 2021, 2022, and 2023: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ By revenue type Security-related engineering services Security systems and products and installation 59,089,502 57,829,366 77,272,367 Security systems maintenance services 9,840,023 10,698,776 14,672,998 Equipment leasing 12,617,616 8,716,360 6,176,271 81,547,141 77,244,502 98,121,636 Security guarding and screening services Security guarding services 15,822,222 38,615,289 51,059,864 Screening services 15,267,528 16,755,336 10,465,751 Related vocational training services 4,928,906 3,832,315 4,043,715 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 By timing of revenue recognition Security-related engineering services Goods and services transferred at a point in time 48,088,609 44,353,052 73,343,945 Services rendered over time 33,458,532 32,891,450 24,777,691 81,547,141 77,244,502 98,121,636 Security guarding and screening services Goods and services transferred at a point in time — — — Services rendered over time 36,018,656 59,202,940 65,569,330 36,018,656 59,202,940 65,569,330 Total 117,565,797 136,447,442 163,690,966 |
Trade Receivables, Net (Tables)
Trade Receivables, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Trade Receivables, Net [Abstract] | |
Schedule of Trade Receivables | Trade receivables, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Trade receivables 23,740,180 43,325,361 Less: allowance for doubtful accounts (44,000 ) (8,347,208 ) 23,696,180 34,978,153 |
Schedule of Allowance for Doubtful Accounts of Trade Receivables | Movement of provision for allowance for doubtful accounts of trade receivables is as follows: For the Years Ended 2022 2023 HK$ HK$ Balance at beginning of the year 14,000 44,000 Provision for the year 30,000 8,303,208 Balance at end of the year 44,000 8,347,208 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstarct] | |
Schedule of Inventories | Inventories consisted of the following: As of September 30, 2022 2023 HK$ HK$ Spare parts and other materials 3,803,085 3,569,211 Work-in-progress 18,889,076 37,350,003 22,692,161 40,919,214 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Assets [Abstarct] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of September 30, 2022 2023 HK$ HK$ Prepaid expenses 238,659 679,882 Advances to staff (A) 106,523 84,611 Deposits (B) 628,609 673,864 Others — 151,902 973,791 1,590,259 (A) Advances are made to staff for their purchases of miscellaneous consumables in order to perform daily work. (B) Deposits consist of deposits paid to utility service providers such as power and water supplies, landlords of the leased properties and carparking spaces, and management offices of the leased or owned properties. The deposits are refundable upon termination or expiry of corresponding services and rental. |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property And Equipment, Net [Abstract] | |
Schedule of Property and equipment, net | Property and equipment, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Building 565,000 565,000 Leasehold improvements 320,000 320,000 Motor vehicles 1,463,000 1,480,700 Furniture, fixtures and equipment 100,747 100,747 Equipment for leasing 14,491,150 13,156,650 Less: accumulated depreciation (6,216,280 ) (7,217,534 ) Property and equipment, net 10,723,617 8,405,563 |
Schedule of Disposal of Equipment for Leasing | Such activities resulted in the disposal of equipment for leasing, which was classified as in the security-related engineering services, as follows: For the Years Ended September 30, 2021 2022 HK$ HK$ Cost 16,417,750 2,888,150 Accumulated depreciation (2,590,273 ) (1,024,258 ) Carrying amount of the equipment for leasing disposed 13,827,477 1,863,892 Proceeds from disposal 17,760,116 — Gain (loss) on disposal 3,932,639 (1,863,892 ) |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Computer software 425,000 425,000 Less: accumulated amortization (195,120 ) (280,121 ) Intangible assets, net 229,880 144,879 |
Schedule of Future Estimated Amortization Expenses are Disclosed | Future estimated amortization expenses are disclosed as follows: Twelve months ending September 30, HK$ 2024 84,463 2025 29,000 2026 29,000 2027 2,416 144,879 |
Investment in Key Management _2
Investment in Key Management Insurance Policy (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Investment in Key Management Insurance Policy [Abstract] | |
Schedule of Investment in Key Management Insurance Policy | The Group entered into a key management insurance policy for the founder to secure that the operation of the Group will not be affected by the death and loss of position of the founder. The fair value of the investment in key management insurance policy is determined at end of each reporting period at the cash surrender value that could be realized under the insurance policy, which is primarily based on the guaranteed cash value stated on the annual statement from the insurance company. The fair value measurement of the investment in key management insurance policy has been categorized as Level 3 based on the inputs to the valuation technique used and is positively correlated to the surrender cash value. For the Years Ended 2022 2023 HK$ HK$ Balance at beginning of the year 979,680 1,065,480 Premium paid 47,932 47,932 Change in fair value recognized in the consolidated statements of income 37,868 44,108 Balance at end of the year 1,065,480 1,157,520 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of the Operating Leases Related Assets and Liabilities | The table below presents the operating leases related assets and liabilities recorded on the consolidated balance sheets: As of September 30, 2022 2023 HK$ HK$ Operating lease ROU assets, net 1,449,859 1,113,926 Operating lease liabilities – current 541,118 204,156 Operating lease liabilities – non-current 38,000 61,229 579,118 265,385 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for the operating leases were as follows: As of September 30, 2022 2023 Weighted average remaining lease term (years) 23.65 29.47 Weighted average discount rate 3.96 % 3.96 % |
Schedule of Lease Expenses Consolidated Statements of Income and Supplemental Cash Flow Information | A summary of lease expenses recognized in the Group’s consolidated statements of income and supplemental cash flow information related to operating leases is as follows: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Amortization of operating lease ROU assets 1,287,745 1,267,957 666,459 Interest of operating lease liabilities 48,455 39,243 16,741 Principal elements of lease payments 1,314,000 1,285,000 661,000 Short-term operating lease expenses 666,585 681,952 1,452,824 Non-cash information: Operating lease ROU assets obtained in exchange for operating lease liabilities 820,002 878,321 330,526 Modification of lease on operating lease ROU assets and operating lease liabilities 239,305 — — Extinguishment of ROU assets and operating lease liabilities due to termination of lease 83,620 — — |
Schedule of Operating Lease Liabilities | The following is a schedule, by year, of maturities of operating lease liabilities as of September 30, 2023: Twelve months ended September 30, HK$ 2024 209,600 2025 61,600 Total lease payments 271,200 Less: imputed interest (5,815 ) Present value of operating lease liabilities 265,385 Less: operating lease liabilities – non-current 61,229 Operating lease liabilities – current 204,156 |
Other Payables (Tables)
Other Payables (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Payables [Abstract] | |
Schedule of Other Payables | Other payables consisted of the following: As of September 30, 2022 2023 HK$ HK$ Rental deposit received – current 1,470,450 1,559,190 Rental deposit received – non-current 1,433,190 996,069 Accrued expenses 339,300 518,257 Listing expenses 540,000 540,000 Others 15,874 16,000 3,798,814 3,629,516 Other payables – current 2,365,624 2,633,447 Other payables – non-current 1,433,190 996,069 3,798,814 3,629,516 |
Accrued Payroll and Welfare (Ta
Accrued Payroll and Welfare (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Payroll and Welfare [Abstract] | |
Schedule of Accrued Payroll and Welfare | Accrued payroll and welfare consisted of the following: As of September 30, 2022 2023 HK$ HK$ Accrued paid time leave 662,837 821,358 Employees 7,754,233 7,014,988 Mandatory provident fund 380,771 392,618 8,797,841 8,228,964 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax [Abstract] | |
Schedule of Income Before Income Tax Expenses Attributable to Geographic Locations | Income before income tax expenses is attributable to the following geographic locations: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Hong Kong 20,605,424 16,342,125 16,169,924 Foreign (11,498,751 ) (6,119,374 ) (4,027,930 ) Income before income tax expenses 9,106,673 10,222,751 12,141,994 |
Schedule of Income Tax Expenses | Income tax expenses consisted of the following: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Current income tax expenses 4,203,901 2,392,635 4,056,189 Deferred income tax benefit (1,119,374 ) (420,058 ) (1,717,339 ) 3,084,527 1,972,577 2,338,850 |
Schedule of Income before Income Tax Expenses Differs from the Theoretical Amount | The tax on the Group’s income before income tax expenses differs from the theoretical amount that would arise using the enacted tax rate of the companies comprising the Group can be reconciled as follows: For the Years Ended 2021 2022 2023 HK$ HK$ HK$ Income tax expenses calculated at Hong Kong Profits Tax rate 1,502,601 1,686,755 2,003,428 Income not taxable for tax purposes (131,208 ) (563,875 ) (98,101 ) Expenses not deductible for tax purposes* 1,898,134 1,014,697 598,523 Tax concession (20,000 ) — — Effect on tax expenses due to preferential tax rate (165,000 ) (165,000 ) (165,000 ) 3,084,527 1,972,577 2,338,850 * Mainly relate to non-deductible listing expenses. |
Schedule of Deferred Tax Assets and Liabilities, Net | Deferred tax assets and liabilities, net consisted of the following: As of September 30, 2022 2023 HK$ HK$ Deferred tax assets: Decelerated tax depreciation of property and equipment 1,242 11,258 Provision for allowance for doubtful accounts — 1,407,161 1,242 1,418,419 Deferred tax liabilities: Accelerated tax depreciation of property and equipment (1,768,737 ) (1,468,575 ) (1,768,737 ) (1,468,575 ) Deferred tax liabilities, net (1,767,495 ) (50,156 ) |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Non-Controlling Interests [Abstract] | |
Schedule of Non-Controlling Interests | Non-controlling interests consisted of the following: As of September 30, 2022 2023 HK$ HK$ Paid-in capital 743,572 — Unappropriated retained earnings 832,362 — 1,575,934 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Contractual Obligations | The following table sets forth the Group’s future minimum contractual obligations as of September 30, 2023: Payments due by period Total Within Within HK$ HK$ HK$ Operating lease payment – short-term leases 521,065 521,065 - Operating lease payment – leases with lease term of more than 12 months 271,200 209,600 61,600 Non-cancellable purchase contracts 9,296,574 9,296,574 - Total 10,088,839 10,027,239 61,600 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions and Balances [Abstract] | |
Schedule of Leases from Related Parties | The table below sets forth the major related parties and their relationships with the Group as of September 30, 2022 and 2023: Name Relationship Mr. Chan Ming Dave Founder, ultimate shareholder Ms. Yam Fung Yee Carrie Founder’s family member Exceptional Engineering Limited Shareholder who owned 95% and 70.19% of the equity interest of the Company as of September 30, 2022 and 2023, respectively |
Schedule of Amounts Due from Related Parties | Amounts due from related parties represented current accounts with related parties, which are used for daily operations, as follows: As of September 30, 2022 2023 HK$ HK$ Exceptional Engineering Limited 15,210 — Ms. Yam Fung Yee Carrie 7,600 — 22,810 — |
Schedule of Amount Due to Related Party | Amount due to a related party represented a current account with a related party, which is used for daily operations, as follows: As of September 30, 2022 2023 HK$ HK$ Mr. Chan Ming Dave 195,958 — |
Schedule of Leases from Related Parties | The details of leases from related parties in effect as of September 30, 2023 are as below: Rent Period Lessee Lessor From To Monthly HK$ Shine Union Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie April 1, 2023 March 31, 2024 37,500 Shine Union Mr. Chan Ming Dave April 1, 2023 March 31, 2024 13,000 Shine Union Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie April 1, 2023 March 31, 2024 20,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS for the years ended September 30, 2022 and 2023: As of September 30, 2021 2022 2023 Numerator: Numerator for basic and diluted earnings per share – net income attributable to the SU Group Holdings Limited’s shareholders (in HK$) 5,799,176 7,762,677 9,697,369 Denominator: Denominator for basic and diluted net income per share – weighted average number of shares 12,000,000 12,000,000 12,000,000 Earnings per share – basic and diluted (in HK$) 0.48 0.65 0.81 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information by Segment | The following tables present summary information by segment for the years ended September 30, 2021, 2022, and 2023: For the Year Ended September 30, 2023 Security-related Security guarding Total HK$ HK$ HK$ Revenues 98,121,636 65,569,330 163,690,966 Cost of revenues (60,045,961 ) (55,602,052 ) (115,648,013 ) Gross profit 38,075,675 9,967,278 48,042,953 Depreciation and amortization 2,044,635 650,085 2,694,720 Total capital expenditures 1,079,700 330,526 1,410,226 For the Year Ended September 30, 2022 Security-related Security guarding Total HK$ HK$ HK$ Revenues 77,244,502 59,202,940 136,447,442 Cost of revenues (50,395,302 ) (46,825,025 ) (97,220,327 ) Gross profit 26,849,200 12,377,915 39,227,115 Depreciation and amortization 2,584,624 1,019,509 3,604,133 Total capital expenditures 2,034,000 264,000 2,298,000 For the Year Ended September 30, 2021 Security-related Security guarding Total HK$ HK$ HK$ Revenues 81,547,141 36,018,656 117,565,797 Cost of revenues (53,444,991 ) (28,150,849 ) (81,595,840 ) Gross profit 28,102,150 7,867,807 35,969,957 Depreciation and amortization 3,527,373 591,769 4,119,142 Total capital expenditures 2,660,250 230,000 2,890,250 |
Schedule of Total Assets | As of September 30, 2022 2023 HK$ HK$ Total assets: Security-related engineering services 70,889,268 88,179,851 Security guarding and screening services 18,895,828 20,227,255 Unallocated assets 3,750,993 6,033,013 93,536,089 114,440,119 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) - HKD ($) | Mar. 01, 2023 | Dec. 11, 2019 | Dec. 09, 2019 | Nov. 21, 2019 |
Organization and Principal Activities [Line Items] | ||||
Equity interest | 10% | |||
Investments at a consideration (in Dollars) | $ 1,000 | |||
SU Investment [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Ownership percentage | 100% | 100% | ||
Shine Union [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Ownership percentage | 100% | |||
Fortune Jet [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Ownership percentage | 90% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | |||||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 HKD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Convenience translation | $ 7.8293 | $ 1 | ||||
Write-down of inventories | $ 118,000 | |||||
Owner of voting interest | 10% | 10% | ||||
Useful life | 5 years | 5 years | ||||
Deferred offering expenses | $ 3,853,500 | 1,571,254 | $ 492,190 | |||
Contract assets | 3,494,443 | 4,653,025 | ||||
Realized contract assets | $ 0.7 | |||||
Percentage of contract assets | 20.70% | 20.70% | ||||
Doubtful accounts of contract assets | $ 307,040 | |||||
Contract liabilities | 22,748,443 | 27,225,278 | $ 2,905,553 | |||
Contract liabilities | 19,344,394 | $ 20,609,753 | ||||
Research and development expense | 200,028 | 17,200 | ||||
Amount of tax benefit | 50% | 50% | ||||
Underpayment of income tax | ||||||
Recognized government grants | $ 602,379 | $ 3,471,615 | $ 1,023,300 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of Property and Equipment | Sep. 30, 2023 |
Public Utility, Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Shorter of the lease terms or the estimated useful lives |
Building [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 25 years |
Motor vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Furniture, fixtures and equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Equipment for leasing [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Disaggregates the Group’s Revenue | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 163,690,966 | $ 20,907,484 | $ 136,447,442 | $ 117,565,797 |
Goods and services transferred at a point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 73,343,945 | 44,353,052 | 48,088,609 | |
Services rendered over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,777,691 | 32,891,450 | 33,458,532 | |
Security-Related Engineering Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 98,121,636 | 77,244,502 | 81,547,141 | |
Goods and services transferred at a point in time one [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | ||||
Services rendered over time one [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,569,330 | 59,202,940 | 36,018,656 | |
Security Guarding and Screening Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,569,330 | 59,202,940 | 36,018,656 | |
Security systems and products and installation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 77,272,367 | 57,829,366 | 59,089,502 | |
Security systems maintenance services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,672,998 | 10,698,776 | 9,840,023 | |
Equipment leasing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,176,271 | 8,716,360 | 12,617,616 | |
Security-Related Engineering Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 98,121,636 | 77,244,502 | 81,547,141 | |
Security guarding services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 51,059,864 | 38,615,289 | 15,822,222 | |
Screening services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,465,751 | 16,755,336 | 15,267,528 | |
Related vocational training services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,043,715 | 3,832,315 | 4,928,906 | |
Security Guarding and Screening Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 65,569,330 | $ 59,202,940 | $ 36,018,656 |
Trade Receivables, Net (Details
Trade Receivables, Net (Details) | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Trade Receivables, Net (Details) [Line Items] | ||||
Provision for allowance for doubtful accounts | $ 8,610,248 | $ 1,099,747 | $ 30,000 | $ 3,000 |
Trade Receivable [Member] | ||||
Trade Receivables, Net (Details) [Line Items] | ||||
Provision for allowance for doubtful accounts | $ 8,303,208 | $ 30,000 |
Trade Receivables, Net (Detai_2
Trade Receivables, Net (Details) - Schedule of Trade Receivables | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Trade Receivables [Abstract] | |||
Trade receivables gross | $ 43,325,361 | $ 23,740,180 | |
Less: allowance for doubtful accounts | (8,347,208) | (44,000) | |
Total trade receivables | $ 34,978,153 | $ 4,467,596 | $ 23,696,180 |
Trade Receivables, Net (Detai_3
Trade Receivables, Net (Details) - Schedule of Allowance for Doubtful Accounts of Trade Receivables - Trade Receivable [Member] - HKD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Trade Receivables, Net (Details) - Schedule of Allowance for Doubtful Accounts of Trade Receivables [Line Items] | ||
Balance at beginning of the year | $ 44,000 | $ 14,000 |
Provision for the year | 8,303,208 | 30,000 |
Balance at end of the year | $ 8,347,208 | $ 44,000 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Inventories [Abstract] | |||
Spare parts and other materials | $ 3,569,211 | $ 3,803,085 | |
Work-in-progress | 37,350,003 | 18,889,076 | |
Inventories, net | $ 40,919,214 | $ 5,226,420 | $ 22,692,161 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | |
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||||
Prepaid expenses | $ 679,882 | $ 238,659 | ||
Advances to staff | [1] | 84,611 | 106,523 | |
Deposits | [2] | 673,864 | 628,609 | |
Others | 151,902 | |||
Prepaid expenses and other current assets | $ 1,590,259 | $ 203,116 | $ 973,791 | |
[1]Advances are made to staff for their purchases of miscellaneous consumables in order to perform daily work.[2]Deposits consist of deposits paid to utility service providers such as power and water supplies, landlords of the leased properties and carparking spaces, and management offices of the leased or owned properties. The deposits are refundable upon termination or expiry of corresponding services and rental. |
Property And Equipment, Net (De
Property And Equipment, Net (Details) | 12 Months Ended | ||||||
Oct. 12, 2020 HKD ($) | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 HKD ($) | Sep. 30, 2021 USD ($) | |
Property And Equipment, Net [Abstract] | |||||||
Depreciation | $ 1,943,260 | $ 248,204 | $ 2,253,593 | $ 2,775,397 | |||
impairment loss property and equipment (in Dollars) | |||||||
Granting budget | $ 300,000,000 |
Property And Equipment, Net (_2
Property And Equipment, Net (Details) - Schedule of Property and Equipment, net | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Property and Equipment, Net [Abstract] | |||
Building | $ 565,000 | $ 565,000 | |
Leasehold improvements | 320,000 | 320,000 | |
Motor vehicles | 1,480,700 | 1,463,000 | |
Furniture, fixtures and equipment | 100,747 | 100,747 | |
Equipment for leasing | 13,156,650 | 14,491,150 | |
Less: accumulated depreciation | (7,217,534) | (6,216,280) | |
Property and equipment, net | $ 8,405,563 | $ 1,073,603 | $ 10,723,617 |
Property And Equipment, Net (_3
Property And Equipment, Net (Details) - Schedule of Disposal of Equipment for Leasing - Property, Plant and Equipment [Member] - HKD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cost | $ 2,888,150 | $ 16,417,750 |
Accumulated depreciation | (1,024,258) | (2,590,273) |
Carrying amount of the equipment for leasing disposed | 1,863,892 | 13,827,477 |
Proceeds from disposal | 17,760,116 | |
Gain (loss) on disposal | $ (1,863,892) | $ 3,932,639 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Intangible Assets, Net [Abstract] | ||||
Amortization of intangible assets | $ 85,001 | $ 10,857 | $ 82,583 | $ 56,000 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Intangible Assets, Net [Abstract] | |||
Computer software | $ 425,000 | $ 425,000 | |
Less: accumulated amortization | (280,121) | (195,120) | |
Intangible assets, net | $ 144,879 | $ 18,505 | $ 229,880 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Future Estimated Amortization Expenses | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Future Estimated Amortization Expenses [Abstract] | |||
2024 | $ 84,463 | ||
2025 | 29,000 | ||
2026 | 29,000 | ||
2027 | 2,416 | ||
Total | $ 144,879 | $ 18,505 | $ 229,880 |
Investment in Key Management _3
Investment in Key Management Insurance Policy (Details) - Schedule of Investment in Key Management Insurance Policy | 12 Months Ended | ||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | |
Schedule of Investment in Key Management Insurance Policy [Abstract] | |||
Balance at beginning of the year | $ 1,065,480 | $ 979,680 | |
Premium paid | 47,932 | 47,932 | |
Change in fair value recognized in the consolidated statements of income | 44,108 | 37,868 | |
Balance at end of the year | $ 1,157,520 | $ 147,845 | $ 1,065,480 |
Leases (Details)
Leases (Details) | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Leases [Line Items] | ||||
Equipment leasing income | $ 163,690,966 | $ 20,907,484 | $ 136,447,442 | $ 117,565,797 |
Equipment for leasing | 13,156,650 | 14,491,150 | ||
Accumulated depreciation assets | 5,424,149 | 4,405,042 | ||
Depreciation expense | 1,750,739 | 1,917,894 | 2,476,944 | |
Equipment Leasing [Member] | ||||
Leases [Line Items] | ||||
Equipment leasing income | $ 6,176,271 | $ 8,716,360 | $ 12,617,616 | |
Land [Member] | ||||
Leases [Line Items] | ||||
Operating lease remaining terms | 55 years | |||
Minimum [Member] | ||||
Leases [Line Items] | ||||
Operating lease remaining terms | 2 months | |||
Maximum [Member] | ||||
Leases [Line Items] | ||||
Operating lease remaining terms | 26 months | |||
Hong Kong [Member] | Minimum [Member] | ||||
Leases [Line Items] | ||||
Operating lease remaining terms | 1 year | |||
Hong Kong [Member] | Maximum [Member] | ||||
Leases [Line Items] | ||||
Operating lease remaining terms | 2 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of the Operating Leases Related Assets and Liabilities | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of the Operating Leases Related Assets and Liabilities [Abstract] | |||
Operating lease ROU assets, net | $ 1,113,926 | $ 142,277 | $ 1,449,859 |
Operating lease liabilities – current | 204,156 | 26,076 | 541,118 |
Operating lease liabilities – non-current | 61,229 | $ 7,820 | 38,000 |
Operating lease liabilities | $ 265,385 | $ 579,118 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates [Abstract] | ||
Weighted average remaining lease term (years) | 29 years 5 months 19 days | 23 years 7 months 24 days |
Weighted average discount rate | 3.96% | 3.96% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Lease Expenses Consolidated Statements of Income and Supplemental Cash Flow Information | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Schedule of Lease Expenses Consolidated Statements of Income and Supplemental Cash Flow Information [Abstract] | ||||
Amortization of operating lease ROU assets | $ 666,459 | $ 85,124 | $ 1,267,957 | $ 1,287,745 |
Interest of operating lease liabilities | 16,741 | 39,243 | 48,455 | |
Principal elements of lease payments | 661,000 | 1,285,000 | 1,314,000 | |
Short-term operating lease expenses | 1,452,824 | 681,952 | 666,585 | |
Non-cash information: | ||||
Operating lease ROU assets obtained in exchange for operating lease liabilities | 330,526 | $ 42,217 | 878,321 | 820,002 |
Modification of lease on operating lease ROU assets and operating lease liabilities | 239,305 | |||
Extinguishment of ROU assets and operating lease liabilities due to termination of lease | $ 83,620 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Operating Lease Liabilities | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Operating Lease Liabilities [Abstract] | |||
2024 | $ 209,600 | ||
2025 | 61,600 | ||
Total lease payments | 271,200 | ||
Less: imputed interest | (5,815) | ||
Present value of operating lease liabilities | 265,385 | $ 579,118 | |
Less: operating lease liabilities – non-current | 61,229 | $ 7,820 | 38,000 |
Operating lease liabilities – current | $ 204,156 | $ 26,076 | $ 541,118 |
Other Payables (Details) - Sche
Other Payables (Details) - Schedule of Other Payables | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Other Payables [Abstract] | |||
Rental deposit received – current | $ 1,559,190 | $ 1,470,450 | |
Rental deposit received – non-current | 996,069 | 1,433,190 | |
Accrued expenses | 518,257 | 339,300 | |
Listing expenses | 540,000 | 540,000 | |
Others | 16,000 | 15,874 | |
Sub total | 3,629,516 | 3,798,814 | |
Other payables – current | 2,633,447 | 2,365,624 | |
Other payables – non-current | 996,069 | $ 127,223 | 1,433,190 |
Total | $ 3,629,516 | $ 3,798,814 |
Accrued Payroll and Welfare (De
Accrued Payroll and Welfare (Details) - Schedule of Accrued Payroll and Welfare | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Accrued Payroll and Welfare [Abstract] | |||
Accrued paid time leave | $ 821,358 | $ 662,837 | |
Employees | 7,014,988 | 7,754,233 | |
Mandatory provident fund | 392,618 | 380,771 | |
Accrued payroll and welfare, Total | $ 8,228,964 | $ 1,051,047 | $ 8,797,841 |
Banking Facilities (Details)
Banking Facilities (Details) - CMB Wing Lung Bank Limited [Member] - HKD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Banking Facilities [Line Items] | ||
Trade facility | $ 20,000,000 | |
Utilized banking facilities | 3,503,768 | $ 2,931,934 |
Unutilized banking facilities | $ 16,496,232 | $ 17,068,066 |
Ordinary Shares (Details)
Ordinary Shares (Details) - HKD ($) | 1 Months Ended | |||||||
Apr. 29, 2021 | Sep. 30, 2023 | Jun. 20, 2023 | Feb. 27, 2023 | Sep. 30, 2022 | Apr. 16, 2021 | Mar. 11, 2021 | ||
Ordinary Shares [Line Items] | ||||||||
Authorized share capital (in Dollars) | $ 7,500,000 | |||||||
Ordinary shares | [1] | 750,000,000 | 750,000,000 | |||||
Ordinary shares, par value (in Dollars per share) | [1] | $ 0.01 | $ 0.01 | |||||
Ordinary shares issued | [1] | 12,000,000 | 12,000,000 | |||||
Aggregate shares | 50 | |||||||
Cash consideration (in Dollars) | $ 160,000 | |||||||
Received (in Dollars) | $ 8,000,000 | |||||||
Board of Directors Chairman [Member] | ||||||||
Ordinary Shares [Line Items] | ||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | |||||||
Ordinary shares issued | 11,990,000 | 9,000 | 949 | 1 | ||||
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Capital Contributions (Details)
Capital Contributions (Details) | 12 Months Ended |
Sep. 30, 2023 HKD ($) | |
Capital Contributions [Abstract] | |
Capital contributions | $ 4,961,320 |
Dividend Declaration (Details)
Dividend Declaration (Details) - HKD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Dividend Declaration [Abstract] | |||
Dividends | $ 8 | $ 17 |
Income Tax (Details)
Income Tax (Details) $ in Millions | 1 Months Ended |
Mar. 31, 2018 HKD ($) | |
Income Taxe [Line Items] | |
Profits tax amount (in Dollars) | $ 2 |
Total assessable profits | 8.25% |
Remaining assessable profits | 16.50% |
Profits tax rate | 16.50% |
HONG KONG | |
Income Taxe [Line Items] | |
Profits tax amount (in Dollars) | $ 2 |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Income Before Income Tax Expenses Attributable to Geographic Locations | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Schedule of Income Before Income Tax Expenses Attributable to Geographic Locations [Line Items] | ||||
Income before income tax expenses | $ 12,141,994 | $ 1,550,841 | $ 10,222,751 | $ 9,106,673 |
Hong kong [Member] | ||||
Schedule of Income Before Income Tax Expenses Attributable to Geographic Locations [Line Items] | ||||
Income before income tax expenses | 16,169,924 | 16,342,125 | 20,605,424 | |
Foreign [Member] | ||||
Schedule of Income Before Income Tax Expenses Attributable to Geographic Locations [Line Items] | ||||
Income before income tax expenses | $ (4,027,930) | $ (6,119,374) | $ (11,498,751) |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of Income Tax Expenses | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Schedule of Income Tax Expenses [Line Items] | ||||
Deferred income tax benefit | $ (1,717,339) | $ (219,348) | $ (420,058) | $ (1,119,374) |
Income tax expenses | 2,338,850 | $ 298,730 | 1,972,577 | 3,084,527 |
Hong kong [Member] | ||||
Schedule of Income Tax Expenses [Line Items] | ||||
Current income tax expenses | 4,056,189 | 2,392,635 | 4,203,901 | |
Deferred income tax benefit | $ (1,717,339) | $ (420,058) | $ (1,119,374) |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of Income before Income Tax Expenses Differs from the Theoretical Amount | 12 Months Ended | ||||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | ||
Schedule of Income before Income Tax Expenses Differs from the Theoretical Amount [Abstract] | |||||
Income tax expenses calculated at Hong Kong Profits Tax rate | $ 2,003,428 | $ 1,686,755 | $ 1,502,601 | ||
Income not taxable for tax purposes | (98,101) | (563,875) | (131,208) | ||
Expenses not deductible for tax purposes | [1] | 598,523 | 1,014,697 | 1,898,134 | |
Tax concession | (20,000) | ||||
Effect on tax expenses due to preferential tax rate | (165,000) | (165,000) | (165,000) | ||
Income tax expenses | $ 2,338,850 | $ 298,730 | $ 1,972,577 | $ 3,084,527 | |
[1]Mainly relate to non-deductible listing expenses. |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of Deferred Tax Assets and Liabilities, Net | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Deferred tax assets: | |||
Decelerated tax depreciation of property and equipment | $ 11,258 | $ 1,242 | |
Provision for allowance for doubtful accounts | 1,407,161 | ||
Deferred tax assets | 1,418,419 | $ 181,168 | 1,242 |
Deferred tax liabilities: | |||
Accelerated tax depreciation of property and equipment | (1,468,575) | (1,768,737) | |
Deferred tax liabilities | (1,468,575) | $ (187,574) | (1,768,737) |
Deferred tax liabilities, net | $ (50,156) | $ (1,767,495) |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - HKD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Non-Controlling Interests [Line Items] | ||
Declaration of dividend | $ 40,400 | $ 50,000 |
Fortune Jet [Member] | ||
Non-Controlling Interests [Line Items] | ||
Declaration of dividend | $ 404,000 | $ 500,000 |
Rate of non-controlling interests | 10% |
Non-Controlling Interests (De_2
Non-Controlling Interests (Details) - Schedule of Non-Controlling Interests | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Non-Controlling Interests [Abstract] | |||
Paid-in capital | $ 743,572 | ||
Unappropriated retained earnings | 832,362 | ||
Non-controlling interests | $ 1,575,934 |
Concentrations (Details)
Concentrations (Details) - HKD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Concentrations [Line Items] | |||
Deposit (in Dollars) | $ 16,389,379 | $ 25,175,007 | |
Bank deposit (in Dollars) | 500,000 | ||
Cash held in banks (in Dollars) | $ 14,253,318 | $ 22,884,962 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customers [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 10% | 10% | |
Trade Receivables [Member] | Customer Concentration Risk [Member] | No Customers [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 10% | ||
Trade Receivables [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 10% | ||
One Suppliers [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 15% | 20.20% | 36.60% |
One Suppliers [Member] | Trade and Notes Payables [Member] | Supplier Concentration Risk [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 18.30% | 54.10% | |
Two Suppliers [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 13.70% | ||
Two Suppliers [Member] | Trade and Notes Payables [Member] | Supplier Concentration Risk [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 10.60% | ||
Three Suppliers [Member] | Trade and Notes Payables [Member] | Supplier Concentration Risk [Member] | |||
Concentrations [Line Items] | |||
Concentration risk, percentage | 10.40% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Commitments and Contingencies [Abstract] | |||
Long service payment | $ 1,008,306 | $ 128,786 | $ 956,388 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Contractual Obligations | Sep. 30, 2023 HKD ($) |
Schedule of Contractual Obligations [Line Items] | |
Operating lease payment – short-term leases | $ 521,065 |
Operating lease payment – leases with lease term of more than 12 months | 271,200 |
Non-cancellable purchase contracts | 9,296,574 |
Total | 10,088,839 |
Within one year [Member] | |
Schedule of Contractual Obligations [Line Items] | |
Operating lease payment – short-term leases | 521,065 |
Operating lease payment – leases with lease term of more than 12 months | 209,600 |
Non-cancellable purchase contracts | 9,296,574 |
Total | 10,027,239 |
Within 1-2 years [Member] | |
Schedule of Contractual Obligations [Line Items] | |
Operating lease payment – short-term leases | |
Operating lease payment – leases with lease term of more than 12 months | 61,600 |
Non-cancellable purchase contracts | |
Total | $ 61,600 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) | 12 Months Ended | ||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | |
Related Party Transactions and Balances (Details) [Line Items] | |||
Lease property | $ 70,500 | ||
Annual rental expense | 846,000 | ||
Lease expenses | $ 899,970 | $ 829,600 | |
Chan Ming Dave [Member] | |||
Related Party Transactions and Balances (Details) [Line Items] | |||
Capital contributions (in Dollars) | $ 4,961,320 |
Related Party Transactions an_4
Related Party Transactions and Balances (Details) - Schedule of Major Related Parties and their Relationships | 12 Months Ended |
Sep. 30, 2023 | |
Mr. Chan Ming Dave [Member] | |
Related Party Transaction [Line Items] | |
Relationship | Founder, ultimate shareholder |
Ms. Yam Fung Yee Carrie [Member] | |
Related Party Transaction [Line Items] | |
Relationship | Founder’s family member |
Exceptional Engineering Limited [Member] | |
Related Party Transaction [Line Items] | |
Relationship | Shareholder who owned 95% and 70.19% of the equity interest of the Company as of September 30, 2022 and 2023, respectively |
Related Party Transactions an_5
Related Party Transactions and Balances (Details) - Schedule of Amounts Due from Related Parties - HKD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Amounts Due from Related Parties [Line Items] | ||
Amounts due from related parties | $ 22,810 | |
Exceptional Engineering Limited [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Amounts due from related parties | 15,210 | |
Ms. Yam Fung Yee Carrie [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Amounts due from related parties | $ 7,600 |
Related Party Transactions an_6
Related Party Transactions and Balances (Details) - Schedule of Amount Due to Related Party - HKD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Mr. Chan Ming Dave [Member] | ||
Schedule of Amount Due to Related Party [Line Items] | ||
Amount due to a related party | $ 195,958 |
Related Party Transactions an_7
Related Party Transactions and Balances (Details) - Schedule of Leases from Related Parties | 12 Months Ended |
Sep. 30, 2023 HKD ($) | |
Shine Union [Member] | |
Schedule of Leases from Related Parties [Line Items] | |
Lessor | Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie |
Rent Period From | Apr. 01, 2023 |
Rent Period To | Mar. 31, 2024 |
Monthly Rental | $ 37,500 |
Shine Union One [Member] | |
Schedule of Leases from Related Parties [Line Items] | |
Lessor | Mr. Chan Ming Dave |
Rent Period From | Apr. 01, 2023 |
Rent Period To | Mar. 31, 2024 |
Monthly Rental | $ 13,000 |
Shine Union Two [Member] | |
Schedule of Leases from Related Parties [Line Items] | |
Lessor | Mr. Chan Ming Dave and Ms. Yam Fung Yee Carrie |
Rent Period From | Apr. 01, 2023 |
Rent Period To | Mar. 31, 2024 |
Monthly Rental | $ 20,000 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of Basic and Diluted EPS | 12 Months Ended | |||||||
Sep. 30, 2023 HKD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 HKD ($) $ / shares shares | Sep. 30, 2021 HKD ($) $ / shares shares | |||||
Numerator: | ||||||||
Numerator for basic and diluted earnings per share – net income attributable to the SU Group Holdings Limited’s shareholders | $ 9,697,369 | $ 1,238,601 | $ 7,762,677 | $ 5,799,176 | ||||
Denominator: | ||||||||
Denominator for basic net income per share – weighted average number of shares | [1] | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |||
Earnings per share – basic | (per share) | $ 0.81 | $ 0.1 | [1] | $ 0.65 | [1] | $ 0.48 | [1] | |
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of Basic and Diluted EPS (Parentheticals) | 12 Months Ended | ||||
Sep. 30, 2023 $ / shares shares | Sep. 30, 2023 $ / shares shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | ||
Schedule of Basic and Diluted EPS [Abstract] | |||||
Denominator for diluted net income per share – weighted average number of shares | [1] | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 |
Earnings per share – diluted | (per share) | [1] | $ 0.81 | $ 0.10 | $ 0.65 | $ 0.48 |
[1]Retrospectively restated for effect of the nominal issuance of shares effected on February 27, 2023 and June 20, 2023 (Note 13). |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Information by Segment | 12 Months Ended | |||
Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 HKD ($) | |
Schedule of Information by Segment [Line Items] | ||||
Revenues | $ 163,690,966 | $ 20,907,484 | $ 136,447,442 | $ 117,565,797 |
Cost of revenues | (115,648,013) | (14,771,182) | (97,220,327) | (81,595,840) |
Gross profit | 48,042,953 | $ 6,136,302 | 39,227,115 | 35,969,957 |
Depreciation and amortization | 2,694,720 | 3,604,133 | 4,119,142 | |
Total capital expenditures | 1,410,226 | 2,298,000 | 2,890,250 | |
Security-related engineering services [Member] | ||||
Schedule of Information by Segment [Line Items] | ||||
Revenues | 98,121,636 | 77,244,502 | 81,547,141 | |
Cost of revenues | (60,045,961) | (50,395,302) | (53,444,991) | |
Gross profit | 38,075,675 | 26,849,200 | 28,102,150 | |
Depreciation and amortization | 2,044,635 | 2,584,624 | 3,527,373 | |
Total capital expenditures | 1,079,700 | 2,034,000 | 2,660,250 | |
Security guarding and screening services [Member] | ||||
Schedule of Information by Segment [Line Items] | ||||
Revenues | 65,569,330 | 59,202,940 | 36,018,656 | |
Cost of revenues | (55,602,052) | (46,825,025) | (28,150,849) | |
Gross profit | 9,967,278 | 12,377,915 | 7,867,807 | |
Depreciation and amortization | 650,085 | 1,019,509 | 591,769 | |
Total capital expenditures | $ 330,526 | $ 264,000 | $ 230,000 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of Total Assets | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 HKD ($) |
Schedule of Total Assets [Abstract] | |||
Security-related engineering services | $ 88,179,851 | $ 70,889,268 | |
Security guarding and screening services | 20,227,255 | 18,895,828 | |
Unallocated assets | 6,033,013 | 3,750,993 | |
Total assets | $ 114,440,119 | $ 14,616,902 | $ 93,536,089 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - IPO [Member] $ / shares in Units, $ in Millions | Dec. 29, 2023 USD ($) $ / shares shares |
Subsequent Events [Line Items] | |
Initial public offering shares | shares | 1,250,000 |
ommon share per share | $ / shares | $ 4 |
Net proceeds | $ | $ 3 |