SUGA International Holdings Limited (“SUGA” or the “Group”) (stock code: 912), a leading electronics total solutions provider that also operates smart pet products and pet food business, today announced its interim results for the six months ended 30 September 2025.
During the period under review, the Group recorded a turnover of HK$778.4 million (1H 2024/25: HK$694.7 million), an increase of 12.0% over the first half of 2024/25. Gross profit was HK$111.5 million (1H 2024/25: HK$98.7 million) and gross profit margin was 14.3% (1H 2024/25: 14.2%). Profit attributable to owners was HK$18.4 (1H 2024/25: HK$20.3 million), a decrease of 9.7% from the first half of 2024/25, mainly due to an increase in the Group’s research and development expenses. Net profit margin was 2.4% (1H 2024/25: 2.9%). Basic earnings per share were HK6.45 cents (1H 2024/25: HK7.14 cents).
To share the fruitful results with shareholders, the Board has resolved to declare an interim dividend of HK4.0 cents per share (1H 2024/25: interim dividend of HK4.0 cents per share).
Dr C H Ng, Chairman of SUGA, said, “In the first half of 2025, the global economy demonstrated resilience in the face of multiple challenges. The Group has actively responded to changes and fully leveraged the synergies between its various businesses. Its three product pillars – professional audio equipment products, Internet of Things (‘IoT’) products, and other electronic products – further strengthened their role as the foundation of the core business, enabling the Group to respond prudently to market volatility. Meanwhile, SUGA will elevate research and development to a long-term strategic level to build a solid foundation for sustainable development.”
Business Review
Electronic products, the Group’s core business, continued to be the main source of revenue during the period under review. Sales amounted to HK$695.8 million (1H 2024/25: HK$594.5 million), representing a year-on-year increase of 17.0% and accounting for 89.4% of the Group’s total sales.
The Group continued to leverage synergies from its diversified product structure. The three pillars of professional audio equipment, IoT products and other electronic products have built a solid business foundation for the Group. Among them, professional audio equipment, as one of the Group’s core businesses, has achieved stable sales performance. During the period, it successfully expanded its customer base and now has more than ten customers for long-term cooperation. As for IoT products, the Group has actively expanded its one-stop solutions in recent years to fully meet the needs of business partners and have become the Group’s fastest-growing product category. The Group’s electronic paper displays and asset trackers have continued to perform well in sales and have become important sources of revenue. In addition, the overall performance of the other electronic products business maintained steady growth despite individual fluctuations, reflecting that the Group has effectively diversified risks and balanced performance through a diversified product portfolio, thereby further strengthening its overall operating foundation. Orders from the Chinese market have also added momentum to the business and injected positive momentum into its development.
Pet business recorded sales of HK$82.6 million during the period (1H 2024/25: HK$100.2 million), representing a year-on-year decrease of 17.5% and accounting for 10.6% of the Group’s total sales.
Regarding pet electronic products, despite the Group’s stable cooperation relationship with existing customers, orders for pet training equipment declined during the period as the business partner adopted a more conservative ordering strategy. For pet food business, the overall market showed a healthy development trend. The Hong Kong and Japanese markets have continued to record solid performance. Hong Kong has benefited from the Government’s promotion of the “Pet Economy” and has good marketing potential, which helps to promote pet food brand promotion and market penetration. The Japanese market has performed particularly well. Having established a strong presence in online sales channel early on, the Group has now expanded its offline channels through major retail partners to enhance market reach. Currently, the Group has more than 70 sales points in Japan, providing strong support for its business development.
Prospects
Looking ahead to the second half of FY2025/26, the outlook for the global economy remains cautiously optimistic. Although some structural challenges persist, including trade frictions, policy differences between major economies, and the continued impact of geopolitical tensions, the overall environment is still subject to uncertainties. However, the fundamentals of economic recovery remain cautiously optimistic, with enterprises and supply chains continuing to adjust to external changes.
The production and sales of electronic products, the core business, will continue to contribute stable and significant revenue to SUGA. With the rapid development of artificial intelligence technology, commercial customers have increasing demand for intelligent manufacturing, which has further promoted the market penetration and application expansion of IoT products. SUGA acquired TxWireless, an Irish company specializing in research and development and production of IoT products. The acquisition significantly enhanced the Group’s comprehensive strength in design services, manufacturing capabilities and back-end support by effectively integrating its professional engineering team and within the year. The Group is currently undertaking some B2B IoT projects that enable our partners to save labor costs and improve margins. The relevant business revenue is expected to be gradually reflected in the second half of this year and the next financial year. The Group will continue to increase its investment in research and development as a key strategy to enhance profitability and core competitiveness in order to achieve sustainable development.
As for the Group’s pet business, it is expected to maintain a stable development trend in the second half of the year. Benefiting from Japanese consumers’ demand for high-quality pet food, the Group’s prospects in the Japanese market are expected to continue to improve. With its high-quality products, strict quality control and stable supply capabilities, the Group will further build brand awareness and customer trust. As the size of the Japanese pet market has steadily expanded, the Group is cautiously optimistic about the long-term development of the market and will continue to invest resources to consolidate its competitive advantage and explore more growth opportunities.
Dr Alfred Ng, Chief Executive Officer and Executive Director of SUGA, concluded, “In the face of both challenges and opportunities, SUGA actively promoted its business diversification strategy and continued to optimize the ‘China Plus One’ production capacity layout to further enhance its competitiveness and risk resistance. The Group is cautiously optimistic about its business prospects in the second half of the year, and will continue to strengthen its operational excellence and flexibly respond to market changes. At the same time, the Group will actively seize emerging opportunities, promote business optimization and innovative development, and strive to achieve stable and sustainable growth goals.”
