Cocoon Holdings Limited Announces Significant Turnaround with Positive Profit Alert for FY2025

Key Points in the Announcement

• Positive Profit Alert: Cocoon Holdings Limited expects to report a net profit attributable to owners of not less than HK\$10.0 million for the year ended 31 December 2025, marking a substantial turnaround from the net loss of approximately HK\$76.8 million in 2024.
• Primary Driver: The improved performance is mainly due to better results from certain publicly traded securities held by the Group. The Group recorded net gains on equity securities classified as financial assets at fair value through profit or loss of not less than HK\$15.0 million in 2025, compared to net losses of HK\$72.2 million in 2024.
• Preliminary Figures: The information is based on unaudited management accounts and has not been reviewed by independent auditors or the audit committee. The final audited annual results are expected to be released in late March 2026.
• Caution to Investors: Shareholders and potential investors are advised to exercise caution when dealing in the shares or securities of the Company, as the figures are preliminary and subject to adjustment.
• Board Composition: As at the announcement date, the Board consists of two executive directors (Mr. Chau Wai Hing, Chairman, and Mr. Wu Ming Gai) and three independent non-executive directors (Ms. Leung Yin Ting, Dr. Wong Sze Lok, and Ms. Lin Hsiu Mei).

Details Investors Should Know

This announcement from Cocoon Holdings Limited represents a substantial shift in the company’s financial performance, moving from a sizeable net loss in 2024 to a projected net profit in 2025. The turnaround is primarily attributed to improved results from the Group’s holdings in publicly traded securities, which have yielded significant gains. This news is highly price-sensitive and could positively impact the share value, as it signals a return to profitability and better management of financial assets.

Investors should note that the figures are based on unaudited accounts and may be subject to further changes once the audited results are finalized. The official audited annual financial results will be published in late March 2026. Until then, caution is urged when trading the company’s shares, as the final numbers may differ from the preliminary estimates.

Potential Impact on Share Price

The expected move from a HK\$76.8 million loss to a HK\$10.0 million profit, driven by strong gains on equity securities, is likely to be regarded as a positive development by the market. This turnaround could boost investor confidence and drive share price appreciation, especially as it reflects improved asset management and a reversal of previous losses.

Board Leadership

The current Board is led by Chairman Mr. Chau Wai Hing and includes executive director Mr. Wu Ming Gai, along with three independent non-executive directors. Their oversight during this turnaround period is noteworthy for investors tracking corporate governance and management effectiveness.

Important Dates

• Reporting Period: Year ended 31 December 2025
• Expected Release of Audited Results: Late March 2026
• Date of Announcement: 20 March 2026

Disclaimer

The above article is based on the Company’s preliminary unaudited management accounts and publicly available information. Investors are advised that these figures are subject to further review and adjustment. Please exercise caution and seek professional advice before making any investment decisions relating to Cocoon Holdings Limited.

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