Cocoon Holdings Limited (0428.HK) Q2 2025 Earnings Report

Overview of QQ2 2025 results for Cocoon Holdings Limited shows a highly unusual earnings mix. Reported revenue of HKD 70,000 in QQ2 2025 contrasts with a substantial non-operating income line that drives net income to HKD 3.039 million and an EPS of HKD 0.0334. The quarter’s top-line decline is stark (YoY revenue down 99.18%), but earnings were buoyed by a large “other income” contribution (HKD 2.969 million) and a sizeable depreciation-related outlay (HKD 3.977 million) that appears to be embedded in operating line items. Consequently, operating income remained HKD 70,000, with a reported gross margin and operating margin of 100.0%, while net income margin clocks at approximately 43.41% based on reported figures. Cash from operations was negative (HKD -4.306 million) as working capital dynamics and non-cash charges weighed on cash generation, though financing activities added HKD 4.389 million, yielding a marginal net cash change of HKD 0.083 million and ending cash of HKD 0.274 million.

From a balance sheet perspective, Cocoon exhibits a robust equity base (total stockholders’ equity of HKD 139.22 million) and a pronounced accumulated other comprehensive income (AOCI) position of HKD 138.149 million. Leverage remains modest with short-term debt of HKD 13.887 million and no long-term debt reported. Liquidity is unusual: a current ratio of 9.25 but a cash ratio of 0.0162, reflecting a heavy load of non-cash current assets (notably sizeable other current assets and investments).

Taken together, the QQ2 2025 results underscore Cocoon’s nature as a principal investment firm whose earnings profile is highly dependent on non-operating income and portfolio valuation dynamics. Without explicit guidance or recurring operating revenue streams, the near-term investment thesis hinges on the quality and visibility of its investment portfolio and potential deployment of liquidity into value-creating opportunities.