Cocoon : INSIDE INFORMATION SUBSTANTIAL DECREASE IN LOSS

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Cocoon Holdings Limited ʕ਷˂ʐછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability and continued in Bermuda with limited liability)

(Stock Code: 428)

INSIDE INFORMATION SUBSTANTIAL DECREASE IN LOSS

This announcement is made by Cocoon Holdings Limited (the "Company" and together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company and potential investors that, based on the preliminary assessment of the Group's unaudited management accounts for the financial year ended 31 December 2020 (the "Reporting Period") and information currently available to the Board, it is expected that the Group will record a net loss within a range of approximately HK$2 million to approximately HK$6 million as compared to the net loss of approximately HK$35 million for the financial year ended 31 December 2019 (the "Corresponding Period"). Such decline in unaudited consolidated net loss for the Reporting Period was primarily attributable to the unrealised loss on listed investment of approximately HK$9 million and the net realised loss on listed investment of approximately HK$9 million in the Corresponding Period turning into unrealised gain and realised gain respectively for the Reporting Period.

The information contained in this announcement is only based on the preliminary assessment made by the Board with reference to the unaudited consolidated management accounts of the Group for the Reporting Period and information currently available and such information has neither been audited nor reviewed by the Company's auditor and/or reviewed by the Company's audit committee. Shareholders of the Company and potential investors are advised to read carefully the annual results announcement of the Company for the Reporting Period which is expected to be issued in late of March 2021.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Cocoon Holdings Limited

Wu Ming Gai

Chairman

Hong Kong, 10 March 2021

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Wu Ming Gai and Ms. Chan Carman Wing Yan; three non-executive Directors, namely Mr. William Keith Jacobsen, Mr. Chen Albert and Mr. Wong Chung Yan Sammy; and three independent non-executive Directors, namely Ms. Chan Man Yi, Ms. Leung Yin Ting, and Mr. Jiang Qian.