COCOON HOLDINGS (00428) issued a profit warning, expecting a net loss attributable to shareholders of approximately HKD 37 million for the mid-term, turning from profit to loss compared to the same period last year.

COCOON HOLDINGS (00428) announced that the Group expects to incur a net loss attributable to owners of the Company of approximately HKD 37 million for the six months ending June 30, 2026, compared to a net profit attributable to owners of the Company of approximately HKD 3 million for the six months ending June 30, 2025. The performance of the net profit attributable to owners of the Company has shifted to a net loss mainly due to the weak performance of publicly traded equity investments held by the Group during the reporting period, resulting in an unrealized loss of approximately HKD 33 million on publicly traded equity investments, compared to an unrealized loss of approximately HKD 3.4 million in the corresponding period of 2025; and a realized loss of approximately HKD 800,000 from the sale of publicly traded equity investments during the reporting period, compared to a realized gain of approximately HKD 11 million in the corresponding period of 2025.