Cocoon Holdings Limited reported QQ1 2025 results with revenue of HKD 35,000 and net income of HKD 1,519,500, largely driven by non-operating investment income. While the company shows an impressive gross margin of 100% and a robust pre-tax margin on a revenue basis, the sizable contribution of other income (HKD 1,484,500) and depreciation (HKD 1,988,500) indicate that reported earnings are heavily influenced by non-operating items rather than core operating activity. The quarter’s net income translated to earnings per share of HKD 0.0167 on a weighted average share count of ~90.7 million, yielding a YoY net income increase of ~116% and a YoY revenue increase of ~100% per the provided metric, but QoQ comparisons are distorted by a trough in prior quarter results and substantial one-off items.
Balance sheet metrics remain a notable strength. Total assets stand at HKD 156.1 million, with cash and short-term investments totaling HKD 154.8 million and current assets at HKD 156.1 million against current liabilities of HKD 16.9 million, implying liquidity headroom and a strong working capital position. Accumulated Other Comprehensive Income (OCI) sits at HKD 138.15 million, indicating a high level of unrealized investment gains embedded in equity. Despite the strong liquidity, the company carries a modest short-term debt of HKD 13.89 million and net debt of HKD 13.61 million, underscoring a conservative capital structure relative to sizeable invested assets.
Management commentary and the earnings call transcript are not provided in the dataset, limiting the ability to extract direct quotes or call themes. Investors should monitor the evolution of investment income vs. operating earnings, sensitivity to market valuations, and any forthcoming guidance on capital deployment and strategy to better interpret the sustainability of earnings in QQ2–QQ4 2025.