Cocoon Holdings Swings to HK$37.5 Million H1 2026 Loss on Sharp Fair-Value Hits

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Cocoon Holdings reported an unaudited net loss attributable to shareholders of HK$37.50 million for the six months ended 30 June 2026, reversing a HK$3.04 million profit recorded in the prior-year period. Basic loss per share deteriorated to 28.46 HK cents from earnings of 3.35 HK cents a year earlier.

Revenue, derived solely from dividend income, fell 70 % year on year to HK$0.02 million. Gross proceeds from the disposal of trading securities contracted to HK$25.0 million from HK$187.0 million in first-half 2025.

Investment performance was the principal drag. The Group booked HK$34.23 million in net unrealised fair-value losses on financial assets at fair value through profit or loss (FVTPL) versus a HK$3.45 million loss a year ago, alongside a HK$0.79 million realised loss compared with a HK$10.96 million gain previously. A HK$4.13 million fair-value loss on its financial asset at fair value through other comprehensive income (FVTOCI) further pressured results.

Total assets declined to HK$147.03 million at end-June from HK$183.68 million at end-2025, driven by a 26.9 % slide in FVTPL assets to HK$88.77 million. The FVTOCI holding—20 % of Anguilla-incorporated gold-mine investor Perfect Path Limited—stood at HK$53.24 million, accounting for 36.2 % of total assets.

Net assets contracted 20.5 % to HK$141.71 million, trimming net asset value per share to HK$0.92 from HK$1.39 at year-end 2025. The gearing ratio eased to 1.0 % as the promissory note balance fell to HK$1.41 million.

During the period, Cocoon raised HK$5.07 million (net: HK$5.00 million) via a share placement of 25.71 million new shares at HK$0.20 each, enlarging issued capital to 154.26 million shares. Proceeds were earmarked for listed and unlisted securities investments (HK$4.0 million) and working capital (HK$1.0 million); the company reported full utilisation post-period.

The portfolio comprised 24 holdings: 11 Hong Kong-listed equities, four US-listed equities, five US OTC stocks, and four private investments. Major positions included Digital Energy Reserve (HK$30.71 million, 20.9 % of total assets), Perfect Path (HK$53.24 million, 36.2 %), BYD, Tencent, Tesla, Alphabet, Readen Holding, SNTE, GSG Group and LNPR Group.

No dividends were declared for the half-year, and no assets were pledged. The company maintained HK$4.40 million in cash and broker balances, with five employees on staff. Management signalled a continued “prudent and flexible” investment approach amid persistent market volatility and intends to monitor portfolio holdings closely while preserving liquidity for new opportunities.

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