One of Asia’s Largest Airlines to Buy SU Group’s AI-Aided X-ray Screeners

Hong Kong, November 19, 2024 – SU Group Holdings Limited (Nasdaq: SUGP) (“SU Group” or the “Company”), an integrated security-related engineering services company in Hong Kong, today announced it will sell AI-aided X-ray screeners to one of Asia’s largest airlines. The premier airline will initially purchase from SU Group 11 AI-aided X-Ray screeners designed for screening air cargo to identify dangerous goods and prohibited items. SU Group’s proprietary Threat Stopper adaptable AI-aided X-ray screeners offer a blend of enhanced security, efficiency, and adaptability that can ultimately contribute to safer and smoother operations, while providing a significant advantage in evolving threat landscapes.

SU Group’s Chairman and CEO, Dave Chan, commented, “We are proud to be supporting one of Asia’s largest airlines in this critical security function, a relationship that we forged together several years ago. Nothing is more important than security when focused on instilling confidence in travelers and providing a smooth experience. In addition, strong safety and security can be a powerful competitive advantage, as travelers prioritize airlines with robust security measures. Given rapid advances in technology and the continued surge in the number of travelers and parcels that need processing, we expect to see a corresponding increase in demand over the coming years for AI-aided X-ray screeners. SU Group is positioned to capitalize on this accelerating trend and expanded addressable market with a proven AI-aided security solution that offers airlines a blend of enhanced security, efficiency, and adaptability that can ultimately contribute to safer and smoother airport operations.”

Airlines are being motivated by numerous factors to invest in AI-aided X-ray screeners and security solutions for screening air cargo and luggage, including:

· Increased Detection Accuracy: AI-enhanced systems can analyze X-ray images with a high degree of precision, allowing for better detection of prohibited items like weapons, explosives, or other dangerous materials. Machine learning algorithms can be trained to recognize even subtle patterns that indicate potentially dangerous or prohibited items, reducing the chance of human error.

· Speed and Efficiency: AI-aided systems can analyze images faster than human screeners, enabling quicker processing times for luggage and cargo. This helps reduce bottlenecks at checkpoints, improving overall operational efficiency and allowing more passengers and cargo to be processed in less time.

· Consistency and Reduced Fatigue: Human screeners are inherently prone to fatigue and may miss items. AI systems maintain consistent accuracy, providing reliable performance throughout the day, while handling large volumes.

· Adaptability to New Threats: AI systems can be updated and retrained to detect new types of threats as they emerge, such as new explosive compounds or prohibited items that might not have been common previously.

· Cost Savings: The improved efficiency and reduced need for re-screening and manual checks can lead to cost savings over time. Faster screening means airlines may need fewer personnel to manage the same volume of luggage, saving on labor costs.

· Enhanced Safety and Customer Trust: By improving the accuracy and reliability of security checks, airlines enhance overall safety, which in turn fosters trust among passengers.

· Compliance with Regulatory Requirements: As governments and aviation authorities place greater emphasis on security and technological advancement, AI-aided screeners can help airlines meet regulatory standards, avoiding fines and ensuring smooth operations.

About SU Group Holdings Limited

SU Group (Nasdaq: SUGP) is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong. Through its subsidiaries, SU Group has been providing turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems for over two decades. The security systems that SU Group provides services include threat detection systems, traffic and pedestrian control systems, and extra-low voltage systems in private and public sectors, including commercial properties, public facilities, and residential properties in Hong Kong. For more information visit www.sugroup.com.hk.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “should,” “will,” “could” and similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s ability to renew contracts with recurring customers; the Company’s ability to secure new contracts; the Company’s ability to accurately estimate risks and costs and perform contracts based on the Company’s estimates; the Company’s relationship with the Company’s suppliers and ability to manage quality issues of the systems; the Company’s ability to obtain or renew the Company’s registrations, licenses, and certificates; the Company’s ability to manage the Company’s subcontractors; the labor costs and the general condition of the labor market; the Company’s ability to compete effectively; the Company’s ability to successfully manage the Company’s capacity expansion and allocation in response to changing industry and market conditions; implementation of the Company’s expansion plans and the Company’s ability to obtain capital resources for planned growth; the Company’s ability to acquire sufficient products and obtain equipment and services from the Company’s suppliers in suitable quantity and quality; the Company’s dependence on key personnel; the Company’s ability to expand into new businesses, industries, or internationally and to undertake mergers, acquisitions, investments, or divestments; changes in technology and competing products; general economic and political conditions, including those related to the security-related engineering services industry; possible disruptions in commercial activities caused by events such as natural disasters, terrorist activities, political, economic, and social instability, and fluctuations in foreign currency exchange rates, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the “SEC”), including the Company’s most recently filed Annual Report on Form 20-F and its subsequent filings. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

Contact:

Global IR Partners

David Pasquale

Phone: +1 914-337-8801

Email: SUGP@globalirpartners.com

SU Group AI aided X-ray Screening PR vFINAL 111924.pdf