Financial Performance - The Group's revenue for the six months ended June 30, 2020, was approximately HK$4,001,000, a decrease of approximately 11.9% compared to HK$4,539,000 in the same period last year[12][21]. - Loss attributable to owners of the Company for the six months ended June 30, 2020, was approximately HK$9,434,000, an improvement from a loss of approximately HK$11,273,000 in the same period last year[13][23]. - Basic loss per share for the Group was HK$0.03 for the six months ended June 30, 2020, compared to HK$0.09 per share in the same period last year[13][16]. - The Group recorded realised gains on listed securities of approximately HK$585,000, down from approximately HK$1,737,000 in the same period last year[22]. - Unrealised losses on listed securities were approximately HK$2,538,000, significantly reduced from HK$11,781,000 in the same period last year[22][23]. - The company reported a loss attributable to owners of approximately HK$9,434,000 for the six months ended June 30, 2020, a decrease from a loss of approximately HK$11,273,000 in the same period last year, primarily due to a reduction in unrealized losses on listed securities by about HK$2,538,000[26]. - For the six months ended June 30, 2020, the Group recorded revenue of approximately HK$4,001,000, representing a decrease of approximately 11.9% compared to HK$4,539,000 in the same period last year[52]. - Loss before tax for the period was HK$9,434,000, compared to a loss of HK$11,273,000 in the previous year, representing a 16.3% improvement[124]. - The basic and diluted loss per share for the six months ended 30 June 2020 was HK$(0.03), unchanged from HK$(0.09) in 2019[159]. Financial Position - As of June 30, 2020, the net assets of the Group were approximately HK$157,282,000, a decrease of approximately 5.1% from HK$165,716,000 as of December 31, 2019[23]. - The group had available bank balances and cash of approximately HK$21,646,000 as of June 30, 2020, down from HK$28,187,000 as of December 31, 2019[32]. - The group had borrowings of approximately HK$21.5 million as of June 30, 2020, compared to HK$22.3 million as of December 31, 2019, with a gearing ratio of approximately 13.4%[34]. - Total assets less current liabilities amounted to HK$177,264,000 as of June 30, 2020, down from HK$185,844,000 at December 31, 2019[126]. - Net assets decreased to HK$157,282,000 as of June 30, 2020, compared to HK$165,716,000 at the end of 2019[126]. - The net asset value per share as of June 30, 2020, was HK$0.44, down from HK$0.46 at the end of 2019[126]. - The company’s accumulated losses increased to HK$39,822,000 as of June 30, 2020, from HK$30,388,000 at the end of 2019[129]. - Cash and cash equivalents decreased to HK$21,646,000 as of June 30, 2020, from HK$28,187,000 at the beginning of the year, reflecting a decrease of 23.2%[132]. - The Group's net decrease in cash and cash equivalents for the six months ended June 30, 2020, was HK$6,541,000, compared to HK$4,326,000 in 2019, indicating a worsening cash flow situation[132]. Investment Activities - The company plans to focus on investing in trading securities, private equity funds, and private enterprises with potential prospects in the second half of 2020[31]. - The fair value of financial assets recognized in other comprehensive income increased to approximately HK$30,400,000 as of June 30, 2020, from HK$29,400,000 as of December 31, 2019, due to fair value changes in the 20% equity interest in Perfect Path Limited[26]. - The Group recognized interest income of approximately HK$823,000 from the loan note investment in Qianhai Blue Prince for the six months ended June 30, 2020, compared to zero in the same period in 2019[60]. - The Group recognized interest income of approximately HK$1.2 million from the loan note investment in Dalong Packaging Machinery for the six months ended June 30, 2020, consistent with the same period in 2019[62]. - The Group's unlisted investments were approximately HK$128,947,000 as of June 30, 2020, slightly down from HK$129,977,000 as of December 31, 2019[54]. - The Group's trading securities were pledged to a securities broker to secure a margin loan, reflecting a strategic financial maneuver[190]. - The Group entered into extension agreements for the maturity date of convertible bonds, reflecting proactive financial management[194]. Dividend and Shareholder Information - The Board resolved not to declare an interim dividend for the six months ended June 30, 2020[15][18]. - The company did not declare any interim dividend for the six months ended 30 June 2020, consistent with the previous year[154]. - Following the completion of the Rights Issue in October 2019, certain shareholders' interests have reduced to below 5% as of June 30, 2020[105]. - As of June 30, 2020, Chen Chien Yeh holds 97,830,790 ordinary shares, representing 27.20% of the total issued ordinary shares of the Company[101]. - Twu Kai Ting holds 6,240,000 ordinary shares, accounting for 1.73% of the total issued ordinary shares[101]. - Solution Smart Holdings Limited and its associated entities hold 5,174,000 ordinary shares, which is 1.44% of the total issued ordinary shares[101]. Market Outlook and Challenges - The company expects challenges in 2020 due to slow growth projections for Hong Kong and China, as well as the ongoing impact of the COVID-19 outbreak on financial performance[30]. - The Group believes that the fund flows into Hong Kong signal a positive outlook for the Hong Kong financial market[24]. - The group noted that the influx of capital into Hong Kong is a positive signal for the financial market, with the stock market experiencing significant gains since June 2020[27]. - The credit rating agency expects the default rate to rise materially to 6.4% by the end of 2020 due to the coronavirus-led downturn[40]. Impairment and Losses - Impairment losses of approximately HK$6,032,000 and deposits of approximately HK$1,592,000 were recognized during the six months ended 30 June 2020[40]. - Total impairment loss made during the period was HK$7,623,000, while there was no impairment loss reported in the same period of 2019[142]. - Impairment losses on loans rose to HK$11,650,000 for the first half of 2020, up from HK$5,619,000 in the previous year, indicating a 107.5% increase[179]. Corporate Governance and Compliance - The Company has complied with all code provisions set out in the Corporate Governance Code during the six months ended June 30, 2020[107]. - The audit committee has reviewed the accounting principles and practices adopted by the Group for the six months ended June 30, 2020[115]. - There were no significant events requiring disclosure that occurred after June 30, 2020[115].

Financial Performance - For the year ended December 31, 2019, the Group recorded a revenue of approximately HK$8,988,000, representing a decrease of approximately 16.9% compared to HK$10,812,000 in the prior year[21]. - The Group reported a loss attributable to owners of the Company of approximately HK$35,361,000, an improvement from a loss of approximately HK$78,458,000 in the prior year[21]. - The Group recorded a realized loss of HK$9,903,000 on listed securities held, compared to a loss of HK$45,350,000 in the previous year[21]. - The Group experienced a realized loss of HK$9,903,000 on listed securities and a fair value loss of HK$9,025,000 during the year[35]. - The loss attributable to owners of the Company was approximately HK$35,361,000, compared to a loss of approximately HK$78,458,000 in the previous year[35]. - The Group recognized a loss on disposal of certain loan notes of approximately HK$2,064,000 during the year[21]. - The Group's unlisted investments were approximately HK$129,977,000, down from HK$144,460,000 in 2018[85]. - The Group held trading securities of approximately HK$7,286,000 as of December 31, 2019, a significant decrease from HK$31,812,000 in 2018[84]. Asset Management - As of December 31, 2019, the net assets of the Group were approximately HK$165,716,000, reflecting a significant increase of 22.4% compared to HK$135,391,000 in 2018[22]. - Financial assets at fair value through profit or loss decreased from approximately HK$85,069,000 in 2018 to approximately HK$26,806,000 in 2019[36]. - The financial assets at fair value through other comprehensive income were approximately HK$29,400,000, compared to HK$35,176,000 in 2018[22]. - As of December 31, 2019, the Group's borrowings decreased to approximately HK$22,268,000 from HK$57,654,000 in 2018, resulting in a gearing ratio of 13.4% compared to 42.6% in the previous year[49]. - The Group had available funds of approximately HK$28,187,000 as of December 31, 2019, primarily held in banks for general working capital[48]. Investment Strategy - The Group plans to focus on investing in trading securities, private equity funds, and private enterprises with potential prospects in 2020[28]. - The Company aims to implement timely and appropriate investment strategies to enhance its investment portfolio and achieve net asset appreciation amid a volatile market[44]. - The Company will continue to monitor macro trends and seek investment opportunities in China, Hong Kong, and overseas[44]. - The Group's strategy focuses on consolidating existing businesses and seeking future domestic and international investment opportunities to enhance financial growth and shareholder value[80]. Market Conditions - The external environment is expected to pose challenges in 2020 due to slow growth projections for Hong Kong and China, as well as the outbreak of coronavirus[28]. - The Hong Kong economy contracted by 1.2% in 2019, marking the first annual decline since 2009, with significant contractions of 2.8% and 2.9% in the third and fourth quarters respectively[45]. - China's GDP growth rate was 6.1% in 2019, the lowest in 29 years, but still within the government's target range of 6% to 6.5%[46]. Corporate Governance - The Group emphasizes sound corporate governance to attract investment and enhance shareholder value[155]. - The Group has established a whistleblowing hotline for stakeholders to discuss areas of concern[146]. - The Group's ESG report aims to increase stakeholders' confidence and understanding of its sustainability actions[143]. Environmental Impact - The Group's total greenhouse gas emissions for the year were 8.69 tonnes, an increase of 62% from 5.36 tonnes in 2018[167]. - The annual emission intensity was 0.17 tCO2e/m2, up from 0.05 tCO2e/m2 in 2018[167]. - The Group's indirect emissions (Scope 2) decreased by 3% to 3.53 tonnes from 3.63 tonnes in 2018[167]. - Other indirect emissions (Scope 3) increased by 200% to 5.16 tonnes, up from 1.72 tonnes in 2018[167]. - The Group promotes a paperless office initiative, encouraging electronic storage and communication to reduce paper waste[172]. Employee Management - The remuneration policy ensures competitive pay levels to attract and retain employees, with a total of 3 full-time employees as of December 31, 2019[122][126]. - The Group had a total of 3 employees as of December 31, 2019, down from 4 in 2018, with 100% being full-time staff in Hong Kong[181]. - The Group's employee turnover rate was 34% for males and 17% for females in 2019[195]. - The Group is committed to ensuring a safe and healthy working environment, with no non-compliance cases reported in occupational health and safety regulations[197].

Cocoon IR2019 Cover output.pdf 1 11/9/2019 下午3:50 Cocoon Holdings Limited 中國天弓控股有限公司 Cocoon Holdings Limited 中國天弓控股有限公司 (formerly known as Huge China Holdings Limited) （前稱為匯嘉中國控股有限公司） (Incorporated in the Cayman Islands with limited liability) (Stock Code 股份代號 : 428) （於開曼群島註冊成立之有限公司） 2019 INTERIM REPORT 中期報告 This interim report 2019, in both English and Chinese versions, is available on the Company's website at www.hugechina.com.hk (the "Company Website"). 本2019中期報告的中、英文版已登載於本公司網 站www.huge-china.com.hk（「本公司 ...

Financial Performance - For the year ended December 31, 2018, the Group recorded a revenue of HK$10,812,000, representing an increase of 2.3% compared to HK$10,570,000 in the prior year[33]. - The Group reported a loss attributable to owners of the Company of HK$69,782,000, an improvement from a loss of HK$205,508,000 in the previous year[33]. - The Group recorded a realized loss of HK$45,350,000 on listed securities, down from HK$84,437,000 in 2017[33]. - The fair value loss on listed securities was HK$10,817,000, compared to HK$108,461,000 in the previous year[33]. - Revenue for the year ended December 31, 2018, was HK$10,812,000, representing an increase of approximately 2.3% from HK$10,570,000 in the prior year[67]. - The Group reported a realized loss of HK$45,350,000 on listed securities and an unrealized loss of HK$10,817,000 during the year[68]. Assets and Liabilities - As of December 31, 2018, the net assets of the Group were approximately HK$135,391,000, a decrease of 22.5% from HK$174,734,000 in 2017[34]. - The financial assets at fair value through profit or loss decreased from HK$201,399,000 in 2017 to HK$85,069,000 in 2018[34]. - Financial assets at fair value through other comprehensive income amounted to approximately HK$35,176,000, recognized for the first time in 2018[34]. - As of December 31, 2018, trading securities held by the Group amounted to HK$31,812,000, a decrease from HK$90,326,000 in 2017[69]. - Unlisted investments increased to HK$144,460,000 in 2018 from HK$117,619,000 in 2017[70]. - The Group's borrowings increased to HK$57,654,000 in 2018 from HK$44,224,000 in 2017, resulting in a gearing ratio of 42.6% compared to 25.3% in the previous year[60]. Future Outlook - The Group anticipates challenges in 2019 due to slow growth projections for Hong Kong and China, with Hong Kong's GDP growth expected to slow to between 2% and 3%[57]. - The Group anticipates a challenging year in 2019 due to slowing economic growth in Hong Kong and China, with a focus on investing in promising securities and private equity[62]. Corporate Actions - The Company changed its name from "Huge China Holdings Limited" to "Cocoon Holdings Limited" on June 29, 2018[35]. - The company raised approximately HK$10,730,000 from the placing of 14,000,000 ordinary shares, with about HK$8,800,000 allocated for repayment of short-term loans and interest payments[76]. - The placing of 19,980,000 ordinary shares generated approximately HK$19,730,000, intended for investment in listed and/or unlisted securities, with HK$10,000,000 specifically earmarked for this purpose[78]. - The Company plans to change its domicile from the Cayman Islands to Bermuda, which will not affect its legal continuity[100]. - The capital reorganisation includes a reduction of share premium to nil, with approximately HK$184.5 million applied to offset accumulated losses[104]. Risk Management - The Board will continue to implement its risk management policy to achieve stable returns on investments for shareholders[58]. - The risk management framework includes risk identification, assessment, treatment, and monitoring[93]. - The Audit Committee ensures the effectiveness of the first and second lines of defense in risk management through constant inspection[93]. - The Group has no significant exposures to fluctuations in foreign exchange rates and did not employ financial instruments to hedge such exposures[95]. Employee and Governance - The company employed a total of 4 full-time employees as of December 31, 2018, including executive directors[84]. - The remuneration policy ensures competitive pay levels to attract and retain employees, with no director involved in deciding their own remuneration[85]. - The key components of the remuneration package include basic salary, allowances, discretionary cash bonuses, and a mandatory provident fund[86]. - The Group is committed to providing a safe and healthy working environment for all employees, regardless of age, gender, or ethnic background[148]. - The Group encourages personal development through external training opportunities and provides special leave for training purposes[163]. Environmental, Social, and Governance (ESG) - The ESG report covers the group's performance in environmental and social aspects from January 1, 2018, to December 31, 2018[111]. - The Group's total greenhouse gas emissions during the Period under Review were 5.36 tonnes, a decrease of 27% from 7.28 tonnes in 2017[130]. - The annual emission intensity was 0.05 tCO2e/m2, down from 0.06 tCO2e/m2 in 2017, attributed to efficient energy control measures[130]. - The Group implemented paper-saving initiatives, including duplex printing and electronic communication, to reduce paper waste[133]. - The Group has established a whistleblowing hotline for stakeholders to discuss areas of concern that could impact business growth[121]. Compliance and Legal - The Group has complied with relevant laws and regulations in the Cayman Islands, British Virgin Islands, and Hong Kong that significantly impact its operations[190]. - The Group had no noncompliance cases regarding violations of child labour and forced labour laws during the review period[170]. - There were no non-compliance cases noted regarding environmental laws and regulations during the Period under Review[142].