Cocoon Holdings turns profitable in 2025, reports HK$9.79 million net gain on robust securities trading

Cocoon Holdings Limited released its audited results for the year ended 31 December 2025, swinging from a HK$76.81 million loss in 2024 to a profit attributable to shareholders of HK$9.79 million. Basic earnings per share recovered to HK$0.09 from a loss per share of HK$1.08 a year earlier.

Revenue, derived entirely from dividend income, rose 25.60% to HK$0.32 million. Gross proceeds from disposal of trading securities expanded more than sevenfold to HK$354.85 million, driving a net realised gain of HK$23.99 million (2024: HK$6.67 million) and narrowing unrealised fair-value losses to HK$7.61 million (2024: HK$78.89 million).

The board has recommended no final dividend, consistent with the prior year.

Balance-sheet metrics improved notably: • Net assets grew 37.05% to HK$178.25 million, equivalent to HK$1.39 per share. • Financial assets at fair value through profit or loss increased to HK$121.43 million, representing 66.11% of total assets, while financial assets at fair value through other comprehensive income rose to HK$57.37 million after a HK$28.50 million fair-value gain on the 20% stake in gold-mining company Perfect Path Limited. • Borrowings fell to HK$2.08 million (2024: HK$13.94 million), cutting the gearing ratio to 1.17% from 10.72%. • Cash, bank balances and amounts due from securities brokers totalled HK$4.45 million.

During the year the company raised fresh equity through two share placements and option exercises, issuing 43.60 million new shares and netting about HK$6.69 million in proceeds, of which HK$5.20 million was channelled into listed securities and HK$1.49 million into working capital.

As at year-end the investment portfolio comprised 15 listed equities—primarily U.S. OTC stocks such as Tesla, Winchester Holding Group and Readen Holding Corporation—and three unlisted positions, including Perfect Path, LNPR Group Inc. and Chelsea Tech Inc.

The board confirmed that no major acquisitions, disposals or capital commitments were made during the reporting period and that there were no significant post-balance-sheet events.