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Strategy of Cocoon

Cocoon Holdings Limited primarily takes a principal negotiation role and often retains a strategic interest in the company for capital appreciation and increased share price.

BUSINESS REVIEW

For the six months ended 30 June 2019, the Group recorded a revenue of approximately HK$4,539,000 as compared to approximately HK$5,380,000 in the same period last year representing a decrease of approximately 15.6%.

For the six months ended 30 June 2019, the Group recorded losses on listed securities of approximately HK$10,044,000 as compared to approximately HK$36,781,000 in the same period last year. The unrealised loss of approximately HK$1,635,000 on unlisted private equity fund (six months ended 30 June 2018: nil).

For the six months ended 30 June 2019, the loss before income tax expense was approximately HK$11,273,000 as compared to the loss of approximately HK$37,454,000 in the same period last year. The loss attributable to owners of the Company was approximately HK$11,273,000 as compared to the loss of approximately HK$37,454,000 in the same period last year. The loss for the six months ended 30 June 2019 was mainly due to realised gain of approximately HK$1,737,000 and unrealised loss of approximately HK$11,781,000 on trading securities; and unrealised loss of approximately HK$1,635,000 on unlisted private equity fund.

Executive Directors

Mr. Wu Ming Gai

Ms. Chan Carman Wing Yan

Non-Executive Directors

Mr. William Keith Jacobsen

Mr. Chen Albert

Mr. Wong Chung Yan, Sammy

Independent Non-Executive Directors

Ms. Chan Man Yi

Ms. Leung Yin Ting

Mr. Jiang Qian

PROSPECTS AND FUTURE PLANS

The performance of the first half of 2019 of Hang Seng Index
(“HSI”) fluctuated significantly. HSI rose from 25,130 points on the
last day of 2018 sharply to 30,081 points at the beginning of May
2019, HSI dropped to 26,761 points at the beginning of June 2019.
It can be seen that the several unexpected events and the USChina trade war are continually affected the macroeconomic and
geopolitical environment. In such unstable market environment,
the Group’s listed securities performed not so satisfactorily.

 

Looking ahead to second half of 2019, the Company will stay
in focus to invest in trading securities, private equity funds and
private enterprises with potential prospect. Our approach will keep
timely and appropriate investment strategies in response to the
volatile market, in order to enhance our investment portfolio and
achieve net asset appreciation. The Board will pay close attention
to the macro trends and keep seeking opportunities to invest in
China, Hong Kong and overseas. The Company will continue
to implement its risk management policy with an aim to achieve
stable returns on investments for our shareholders.